Category Archives: National Collegiate Trust

Student Loan Crisis and NCT

A couple of Student Loan topics this week,

Student Loan Crisis and NCT
Students Graduating

Bloomberg News does a nice job showing

the Student Loan crisis is worse than what

the government is telling us.

Student Loan Crisis – Defaults

For most contracts, default means you missed a payment, or, let your car insurance lapse.

But in Student Loan Land:

The default figure understates the true amount of distress. The Education Department counts a borrower as being in default only once she has gone 361 days without a payment, and the Obama administration doesn’t make public the number of borrowers who are defaulting on federal student loans made by other lenders in a since-discontinued bank-based program.

As I keep saying, the government counts loans in forbearance as current.

Not to mention, student loans on which payments are being made will take much longer to be paid off.

More than half the debt carried by borrowers is scheduled to be repaid more than a decade after the bills first came due—a reversal from four years ago, when most debt was scheduled to be repaid within 10 years.

This is largely due to greater enrollment in income-based repayment plans, which stretch out payments to 20 or 25 years. As a result, Americans are now carrying substantial amounts of student debt well into their 40s and 50s, according to the Federal Reserve Bank of New York.

And, guess what?  The government is not meeting its goal of no defaults.  Defaults are rising, 1.1 million new defaults on student loans last year.

And the government, warning that the future may bring what has already happened:

Federal financial regulators and the U.S. Treasury Department have warned that high student debt burdens could dampen household consumption and reduce Americans’ ability to take out new loans to purchase or invest in other items. In 2013, President Barack Obama himself issued an ominous warning. “Our economy can’t afford the trillion dollars in outstanding student loan debt, much of which may not get repaid because students don’t have the capacity to pay it,” he said.


For what to do if you have student loans for attending ITT, see my friend Joshua Cohen’s advice.

National Collegiate Trust

This is the company that does nothing but buy private student loan debt.

It has some 24 different trusts to which it spins off the student loans it allegedly buys.

I say “allegedly” because I have yet to see them prove they have actually purchased a loan on which they were suing my client.

Each trust is a separate entity, and, files suit on the loan it supposedly owns.

I now have one client with 14 different lawsuits against her, all in the same court, because different trusts are suing her.

We shall see if NCT breaks precedent by proving it actually owns the private student loan on which it is suing.



National Collegiate Trust (NCT) Case Update

Seems I forgot to post the conclusion to one of the NCT private student loan, well, alleged to be so, collection lawsuits that I was defending in state court. NCT filed its motion for summary judgment,meaning that there was no issue of fact, they win, my client owes the money. We responded that NOTHING in all their pages of… Continue Reading

National Collegiate Trust and Wilfred American Educational Corp.

A couple of student loan scams to discuss this week. NCT and robo-signing National Collegiate Trust (NCT) continues to make news on the robo-signing front. NCT even files student loan collection cases when it has no robo-signed documents. Robo-signing came into its own as a term in connection with the mortgage practices so well displayed… Continue Reading

Some NCT Student Loans Ruled Dischargeable

NCT (National Collegiate Trust) does nothing but  buy private student loan debt from banks and – sue or otherwise try to collect. A recent 8th Circuit Court of Appeals case, In Re: Conway, involved both NCT and dischargeability of student loans in bankruptcy. The bankruptcy debtor, Conway, had 15 different student loans, plus some federal student… Continue Reading

NCT Student Loan Lawsuits In Michigan

The cases involving National Collegiate Trust (NCT)  suing my clients are wending their way through the court system. I have had two mediated so far, one a district court student loan case and one in a circuit court. I say NCT, but, there are apparently 24 different trusts that allegedly hold private student loans that… Continue Reading

NCT Student Loans In Michigan

Today on the student loan front, someone calls with  $100,000 of private student loans, and another $52,000 in government student loans. The government loans are in forbearance until February, 2016. So far, so good. NCT (National Collegiate Trust) buys bad private student loans. They do not lend anyone money. They, do, however, apparently buy bad… Continue Reading

Private Student Loans and NCT

NCT, or, National Collegiate Trust, is in the private student loan business. No, they do NOT make student loans, they buy them. Government loan, private loan, what’s the difference? Private student loans are the worst debt in America bar none. I didn’t come to this conclusion lightly, but only after representing clients in foreclosures, tax… Continue Reading