Sued By National Collegiate Student Loan Trust? Here’s What to Do

If you’re being sued by National Collegiate Student Loan Trust or already have a judgment against you, you might be wondering if recent lawsuits against the Trusts can help you get rid of your debt.

Short answer: probably not.

Yes, the CFPB and others previously sued NCSLT for missing paperwork, robo-signing affidavits, and suing borrowers past the statute of limitations. Some settlements even paused collections or dismissed debts entirely. But most of those protections vanished when the Trump administration gutted the CFPB and dismissed the government’s lawsuit against the Trusts.

Realistically, if you’ve received a summons (or just marketing materials from a law firm warning of a pending suit), you have limited time—usually 20 to 30 days—to formally respond in court and raise any defenses you have.

Ahead, we’ll explain exactly how that process works. But first, let’s quickly review your three main options:

• Fight the lawsuit.

• Negotiate a settlement.

• Deal with the loans in bankruptcy.

Let’s start from the beginning.

If you’ve been served with a lawsuit from National Collegiate Student Loan Trust, you’re facing important deadlines and decisions. Here’s exactly what you should do next:

1. Check Your Response Deadline

You usually have 20 to 30 days to file a written response, depending on your state.

Why it matters: Miss this deadline, and NCSLT can automatically get a default judgment against you, letting them garnish wages or freeze bank accounts.

Next step: Confirm your exact deadline, which is usually noted in bold on the first page of your summons.

2. Speak to a Lawyer (Even if Just for a Consult)

Finding a local attorney who specializes in NCSLT lawsuits can be challenging. Few lawyers focus specifically on student loan defense.

• If you’re in Missouri, we can potentially represent you directly.

• Outside Missouri? Consider scheduling a consult with us—we’ll clarify your situation, outline a defense strategy, and possibly connect you to someone in your area who regularly handles debt collection or bankruptcy matters.

You might also seek help locally from:

• Debt-collection defense lawyers

• Credit-card defense lawyers

• Bankruptcy attorneys

Any lawyer experienced with consumer debt lawsuits can at least help you file your response and avoid critical early mistakes.

3. Protect Yourself by Filing an Answer

Your immediate goal: respond to the lawsuit in writing (your “Answer”) and clearly state defenses against NCSLT’s claims.

Key defenses include:

• NCSLT doesn’t properly own your loan (chain-of-title issues).

• The statute of limitations has expired.

• The documentation (like promissory notes or affidavits) is missing or flawed.

• The amount NCSLT claims is incorrect or unsupported.

We’ll break down these defenses individually below, so you understand how they work.

To defend yourself effectively against National Collegiate Student Loan Trust, you’ll typically raise specific affirmative defenses in your initial court response (“Answer”). Here’s exactly how each defense works:

1. Chain of Title (NCSLT May Not Actually Own Your Loan)

NCSLT must prove it legally owns your loan, often difficult because your loan was bundled and transferred multiple times.

• What to do: Demand NCSLT produce all original assignments proving clear ownership from the original lender through to the Trust.

• Result: If they can’t show an unbroken chain of ownership, courts frequently dismiss these lawsuits.

2. Statute of Limitations (Your Debt Might Be Too Old to Sue On)

Each state has a legal time limit (usually between 3–10 years) to sue over unpaid debt. Once that expires, NCSLT can’t legally collect through court action.

• What to do: Check your state’s limitations period. If it expired, explicitly raise “statute of limitations” in your defense. Don’t make any payments or admit owing the debt—this could reset the clock.

• Result: If NCSLT sued past the limitations period, the lawsuit will typically be dismissed.

3. Missing or Flawed Documentation (They May Not Have Your Loan Papers)

NCSLT often struggles to produce complete documentation, such as the signed promissory note or an accurate account ledger showing exactly what you owe.

• What to do: Demand original or authenticated copies of loan documents and payment histories. If NCSLT submits generic or incomplete paperwork, object to it.

• Result: Judges regularly dismiss cases due to missing or inadequate documents.

4. Challenging the Debt Amount (Incorrect Balance Calculations)

NCSLT’s claimed balances can include unexplained fees, charges, or incorrect interest calculations.

• What to do: Require detailed proof of the debt balance (including a breakdown of interest, fees, and charges) and dispute any inaccuracies you find.

• Result: NCSLT may fail to prove the accuracy of their claimed amount, leading to reduced judgments or dismissals.

5. Demanding a Live Witness (Attacking Robo-Affidavits)

NCSLT typically uses affidavits from employees with no direct knowledge of your loan. These “robo-signed” affidavits often fail legal standards.

• What to do: File a motion to exclude NCSLT’s affidavit or demand they produce a live witness for questioning in court.

• Result: Without credible testimony, the court may exclude their main evidence and dismiss the case entirely.

After being served, your first real decision is how you want to handle the lawsuit, and you have more than one way forward. Here’s how each strategy could play out for you practically:

Option 1: Negotiate a Settlement Immediately

You might decide right away that fighting isn’t worth your time or energy, especially if:

• You know you borrowed the money and want to quickly resolve this.

• You’re too busy or overwhelmed to deal with court.

• You can access funds soon to offer a lump sum, typically 40–60% of the claimed balance.

Choosing settlement early removes uncertainty and provides immediate relief.

Option 2: File an Answer First, Then Consider Settlement

Filing an Answer preserves your legal options and gives you negotiating leverage. It doesn’t automatically lock you into fighting the entire lawsuit:

• Once you respond, NCSLT must show their evidence. If weak, your settlement leverage improves dramatically.

• If their evidence is solid, you can pivot and negotiate at any time before trial.

This approach keeps flexibility and allows you to adjust based on how the case unfolds.

Option 3: Fight the Lawsuit Aggressively

You might decide from the start to challenge NCSLT’s case fully, especially if:

• The loan documentation is clearly incomplete or flawed.

• The statute of limitations is obviously expired.

• You want a chance at a full dismissal or a favorable summary judgment ruling.

Even if you initially fight aggressively, you can still switch gears and settle later if circumstances change or negotiations improve.

Option 4: Deal With the Loans in Bankruptcy

If you’ve previously filed bankruptcy, or if bankruptcy was already something you were considering, this might be your best path, especially when:

• Your loans exceeded your school’s cost of attendance (making them easier to discharge).

• There’s no realistic way to raise enough funds for a settlement.

• You’re willing to start (or reopen) a bankruptcy case to pursue discharge through an adversary proceeding.

While bankruptcy doesn’t automatically erase student loans, it can provide relief under the right circumstances.

Once National Collegiate Student Loan Trust has a judgment against you, your earlier defenses (like chain of title or statute of limitations) typically no longer apply.

Your options become narrower at this stage, but you still have paths available.

Option A: Move Quickly to Set Aside a Recent Default Judgment

If the judgment is recent (usually within 30–90 days), you might still get it overturned. You’ll need to show:

• A legitimate reason for missing the deadline (e.g., you weren’t properly served).

• Valid defenses you’d raise if allowed back into court.

If successful, you get a second chance to fight, negotiate, or resolve your lawsuit on better terms.

Option B: Negotiate a Lump-Sum Settlement

Even after a judgment, NCSLT often accepts settlements. Typically, you’ll need to offer a lump sum payment—usually around 50% of the judgment balance (though this varies case-by-case).

This approach can:

• Quickly resolve the debt.

• End wage garnishments or bank levies.

• Allow you to start repairing your credit sooner.

But note: Settling a judgment usually requires immediate funds or financing.

Option C: Consider Bankruptcy (Including Reopening a Past Case)

If a lump-sum settlement isn’t financially possible—or if your loan amount far exceeds your ability to pay—bankruptcy may offer relief.

• New Bankruptcy Case: You can file bankruptcy and then pursue a special lawsuit (adversary proceeding) to potentially discharge the private student loan.

• Reopening a Past Bankruptcy Case: If you already filed bankruptcy before the judgment (but didn’t address this loan), you may reopen the old case to attempt discharge now.

This is something we’ve helped dozens of student loan borrowers successfully do, especially borrowers whose National Collegiate loans were included in a prior bankruptcy filing. Using this process, we’ve either:

• Completely discharged the debt, or

• Negotiated a better payment arrangement at a substantially reduced amount, often spread over five to ten years and typically at 0% interest.

Related: Student Loan Bankruptcy

By now, you know exactly what’s at stake—and what your options are. But lawsuits involving National Collegiate Trust can be complicated, and mistakes can be costly.

Our team has successfully represented hundreds of borrowers facing these exact situations:

• If you’re dealing with an active lawsuit: We primarily represent borrowers in Missouri courts. But we offer expert consultations nationwide to help you understand your defenses, decide whether to fight or settle, and connect you with experienced local counsel when needed.

• If you’re considering bankruptcy or negotiating a settlement: We assist borrowers nationwide. We regularly handle settlement negotiations and bankruptcy cases involving National Collegiate loans, helping borrowers achieve manageable outcomes, often significantly reducing debt or eliminating it entirely.

No matter your situation, we’re ready to help you get clarity and make informed decisions about your next steps.

Book a call today.