NCT And Me

Shout out to Susan Tompor of the Detroit Free Press                (click here)

for an excellent article on NCT private student loan trusts.

With quotes from yours truly.

Anyway, the New York Times story I linked to last week is helping publicize the story, that NCT (National Collegiate Trust) has trouble proving it owns the student loans on which it is bringing lawsuits throughout the country.

Hey, I admit, I enjoy writing a blog post that links to a story in which I am quoted.

Starting here:

Big headlines are surrounding the possibility of up to $5 billion in debt that’s already in default being wiped out. The controversy centers on lawsuits filed against borrowers, student loans that were originated at banks a decade or more ago, and the National Collegiate Student Loan Trusts, which holds about 800,000 of these private student loans.


Kurt O’Keefe, a Grosse Pointe Woods attorney who has a blog called “Discharge Student Loan,” said he’s hopeful that more people who are struggling to make payments on these private student loans will realize that they cannot just sit back if they’re sued for unpaid student loan debt. His web site is 

So, I know I am right.

All kidding aside, calling more attention to these NCT loans, specifically, that there are defenses to their lawsuits, is great.

Not a lot of lawyers handle these NCT student loan cases, but if you are not in Michigan, I can probably find you one.

As I have blogged before:

“It’s a default judgment business model,” O’Keefe said. 

The trusts, he said, are essentially betting that the borrowers won’t show up in court and the creditor will win by default and get a judgment against you. Once a judgment is granted, it’s possible for the creditors to garnish money from one’s paycheck and other earnings in Michigan, as well as garnish state income tax refunds and money from credit union and bank accounts.

Now, there is no guarantee you will win if NCT sues you.  I have had one judge rule against them, and then, without any new information, decide that he was wrong the first time, and changed his mind.

Another judge had no time for me, and ruled for them.

But, there are the dismissals, where they give up because they cannot produce a witness, or, for unknown reasons.

When you are being sued for the kind of $ NCT seeks for student loan debt, you really cannot afford to not get a lawyer.

Article Name
NCT and Kurt OKeefe
NCT (allegedly) buys private student loan debt from banks, and collects, or tries to. But can they prove in court that you owe them money?
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