Our New Jersey Student Loan Debt Lawyer Explains the National Collegiate Trust

In New Jersey, many individuals with private student loans interact with entities such as the National Collegiate Trust (NCT) or its affiliate, American Education Services (AES). This interaction often occurs under challenging circumstances, especially if there has been a default on the loan. In such cases, it's not uncommon for these borrowers to face legal action initiated by these organizations. As a New Jersey student loan debt lawyer, I can explain your options if contacted by these entities.

What is the National Collegiate Trust?

The NCT isn't just one company or one trust; it's a family of many separate trusts under the parent company, National Collegiate Funding. These trusts were created in Delaware and operate throughout the country. 

NCT buys student loans from the original lenders (such as PNC Bank, JP Chase, Bank of America, Credit One, and more) and then attempts to collect them for a profit. In that regard, they are no different from Midland Funding, Portfolio Recovery, or LVNV Funding.

Can I Fight NCT's Law Suit?

To effectively challenge NCT, they must demonstrate ownership of the loan, meaning they need to provide legal evidence confirming their purchase of the loan, effectively stepping into the role of the original lender.

Furthermore, as a Delaware-based entity, NCT must register in the State of New Jersey to conduct business and utilize its court system. Failure to do so may lead to dismissing any lawsuits it initiates in New Jersey.

NCT typically relies on the fact that most collection lawsuits are not contested by the debtor, resulting in default judgments in their favor. Therefore, it's crucial for student loan borrowers to respond to these lawsuits and require NCT to substantiate its claims. By doing so, there's a chance of success in the legal battle.

What to Do If NCT Already Has a Judgment

Remember, NCT isn't registered with the State of New Jersey and shouldn't be using our courts. Therefore, any judgment they may have entered was wrongfully obtained. This means that you can move to vacate the judgment and dismiss the case.

You should also do this as soon as possible if you own or ever hope to own real estate. This is because these judgments can act as liens against land in New Jersey. It can cause problems for the purchase of a property or a sale or refinance of a property you already own.

What Can You Do About It?

If you live in New Jersey and have been sued by NCT on a student loan or they have a judgment against you, you must take action. I have experience dealing with NCT and their lawyers and can help. Call my office at 856-432-4113 or contact me through this site to schedule a consultation.

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

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