Student Loan Lawsuit Challenges Loans Sold by National Collegiate Student Loan Trust
Audet & Partners, LLP is investigating claims in a student loan lawsuit that student loans held by the National Collegiate Student Loan Trust (“National Collegiate”), may not be collectible due to the National Collegiate’s inability to prove the existence of enforceable debts. The student loans that may be invalid were made to students more than a decade ago by various lenders.
In a scheme similar to that employed the subprime mortgage industry almost ten years ago, large numbers of student loans were bundled together and marketed to investors by National Collegiate. As these loans began to change hands over time in the private market, important paperwork needed to prove the existence of many student loans has gone missing. As a result, students are now successfully challenging efforts by collectors seeking to collect on past student loans.