What is a National Collegiate Student Loan Trust Lawsuit?
If you do not pay your college student loans when they’re due, there’s a very good chance that you will get multiple collections of lawsuits in your name. The national college student loan trust is one of those groups that frequently files federal lawsuits against hard-working students who borrow from private college loans in the United States without being able to repay the borrowed monies. The National Collegiate Trust initiates the lawsuit on behalf of the borrowers and pays the federal court responsible for the suit. Once the plaintiff receives payment from the defendant in a lawsuit, the plaintiff is required by law to repay the borrowed funds. The suit ends if the plaintiff receives a settlement or judgment from the court. There are two exceptions to this general rule: if the plaintiff is already financially incapacitated and unable to repay the borrowed funds, and if the plaintiff does not settle the suit with the defendant before the conclusion of trial.
National Collegiate Trust Class Action Lawsuit
Private college loans fall within the realm of federal lawsuits. Title VII of the Education Act makes it possible for an aggrieved college student to bring a lawsuit against a bank, college instructor, or other person who gave them a loan while they were enrolled in school. In addition to the right to sue non-profit institutions of higher learning for violations of federal laws, the Education Statute requires the accrediting agency, the schools themselves, to reimburse the borrowers who suffer financial hardships as a result of their loans. While these statutes may seem toothless, they do have teeth. Once a borrower defaults on his or her student loan, the lender can bring a lawsuit against the borrower.
These legal actions are often initiated by the lender, not the borrowers, and therefore are filed in federal court. If the complaint is brought by the bank, the school or its agent, or by one of its faculty members, the complaint is filed under the Higher Education Act. In instances where the complaint is brought by a third party, such as a lending agent acting on behalf of a bank, the complaint is filed under the Tort Claims Act.
In addition to the usual characteristics of personal injury lawsuits, the National Collegiate Trust Class Action Lawsuit also incorporates a few novel features. Unlike many lawsuits, the students who file these claims are not permitted to represent themselves; instead, they must employ the services of an attorney. The counsel also must be paid out of pocket, as the suit cannot proceed unless the plaintiff receives settlement. Additionally, unlike most student loan cases, the student loan providers themselves are usually immune from damages.
Another difference between this type of lawsuit and most others involves both parties. Unlike most litigation against third parties, whose main focus is on damages, the National Collegiate Trust Class Action Lawsuit takes into consideration the harms that have been inflicted on the defrauded parties. For instance, if the plaintiffs receive settlement payments, while the lenders commit fraud, they can still be pursued for damages. However, damages only become a major issue if the defendant refuses to repay the loan amount. In most other situations, however, the lack of damages becomes immaterial because the defendant is rarely faced with the decision of whether or not to admit liability.
If you have been injured through no fault of your own, and wish to pursue a National Collegiate Student Loan Trust lawsuit, you should contact an experienced personal injury attorney. He or she will be able to guide you in determining whether or not your case has a strong chance of success. While the details of how to file the National Collegiate Student Loan Trust lawsuit vary by state, most require that you notify the lender and state that you have filed the suit. You should also indicate whether or not you intend to attempt a self-representation strategy, which is when your lawyer files the lawsuit on your behalf.