National Collegiate Student Loan Trust

July 26, 2013

National Collegiate Student Loan Trust is a Delaware Trust that is currently pursuing many consumers in the Central Florida area on student loans. In most cases, National Collegiate Student Loan Trust is the holder of a loan but does not have the necessary assignments needed to prosecute the case.

In order to be successful in suing on a promissory note, the plaintiff must be the holder of the note. An assignment of a promissory note, or the right to enforce it, must pre-date the filing of the lawsuit. A plaintiff must have standing to file suit at its inception, and may not remedy this defect by subsequently obtaining standing.

Another common defect in the collection cases filed by National Collegiate Student Loan Trust is the failure to give notice of assignment. Section 559.715 of the Florida Statutes requires that notice of assignment be given prior to the filing of a lawsuit.

Also connected is a Boston-based company called First Marblehead, once one of the biggest securitizers of student loans. However, this entity shows up nowhere in the paperwork sent to consumers. Instead, these student loans have the logo of National Collegiate Student Loan Trust.

Recent years have seen an upheaval in the private student loan marketplace. In 2008, the credit crisis caused lenders to cut back drastically on their private student loan offerings. Then, in 2010, the U.S. government revamped the federal student loan program, eliminating the role of private lenders in providing federally backed education loans to students through the Federal Family Education Loan Program (FFELP).

The result is that while, in 2007, there were more than 80 private financial institutions offering student loan products, by 2008 there were fewer than ten. At the same time, interest rates and fees associated with private student loans became prohibitively high.

Have you been sued by National Collegiate Student Loan Trust?