Many people with private student loans here in New Jersey end up dealing with an outfit called National Collegiate Trust (NCT), or its affiliate, American Education Services (AES). If you ended up defaulting on the loan, you were probably also sued by them.

This raises the question, who are they and what do they have to do with the loan?  I didn’t borrow the money from them!

Good question!  National Collegiate Trust isn’t just one company or one trust, its a family of many separate trusts under the parent company, National Collegiate Funding. It buys student loans from the original lenders (such as PNC Bank, JP Chase, Bank of America, Credit One and a few others) and then attempts to collect them for a profit.

Can I Fight a Law Suit By Them?

However, in order to be successful in doing so, if challenged, it must show ownership of the loan (in other words, legal proof that they bought it and are rightfully stepping into the shoes of the original lender).

In addition, since NCT is a Delaware entity, it must register as such with the State of New Jersey in order to do business here and use our court system.  If it does not, suits it brings here can be subject to dismissal.

In bringing suit, NCT is playing the odds, since the vast majority of collection lawsuits are never challenged by the debtor; the creditor wins by default.  This is why it is so important for student loan borrowers to file answers to these suits and put NCT to its proofs. You might prevail!

What Can You Do?

If you live in the southern New Jersey area and have been sued by NCT on a student loan, I may be able to be of assistance. Just call my office at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.

If you would like more information about student loans, you can dowload my free book, I Graduated; Now What? A Guide to Dealing with Your Student Loans.

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Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.


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