National Collegiate Student Loan Trust

National Collegiate Student Loan Trust Debtors Could be on Verge of CFPB Victory to Help

Written by Steve Rhode

National Collegiate Student Loan Trust (NCSLT) student loans have been among the most rediculous student loans out there. They suffer from a lack of documentation like failed subprime mortgages did and yet consumers are getting sued and losing over these loans every day. Consumers stick their heads in the sand when they get sued over NCSLT loans, or any loan, and they lose by default and wind up on the hook for loans that were never legally enforceable.

Bloomberg is reporting the CFPB, which Republicans want to gut or abolish, is on the verge of striking a settlement that will provide some relief to NCSLT debtors.

“Hundreds of thousands of Americans in debt from the worst batch of student loans Wall Street ever bundled could see their balances cut under a tentative agreement the feds have struck with a little-known firm that effectively owns more than $8 billion in securitized student debt.”

“Those trusts, the National Collegiate Student Loan Trusts, are collectively one of the nation’s largest owners of private student debt. Their preliminary settlement with the CFPB was reached by their ultimate owner, VCG Securities LLC, a Florida-based investment firm led by Donald Uderitz. If finalized, it would require the payment of “large sums” in restitution to borrowers and civil penalties to the U.S. government, according to a summary of the proposal filed in a separate court case.”

We will all have to keep a close ye on this rapidly evolving issue and relief appears to be on the way if the CFPB can act before Congress neuters them.

READ  National Collegiate Student Loan Trust Settles Loans for 39% of Balance

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  • Steve,
    I lost in court and have a summary judgment from National Collegiate. The original debt was $10,000. I paid a little over $10,000. Upon going to court the balance was $6,700 with fees making the total $8,800. I would file bankruptcy on them, however my dad cosigned and I would never do that to him. So, I spoke an account manager there and was informed I could fax a settlement letter to them. I am trying to find out what the letter should say and most importantly how much I should offer. I will be having to take a loan for this amount. Can you please help me?
    Thank you for any help you can offer at all.
    Sincerely,
    Robyn

    • Did you challenge the loans during your court appearance? Would love to know more how they were able to validate the loans. You can certainly make an offer and then enter into some negotiations until you reach any amount and payment strategy you both agree on. That is the foundation of negotiation. It is difficult to give you a percentage you should offer because as the amount you can pay in a lump sum to settle is larger the discount is greater typically.

      Since you don’t have experience in negotiating these sorts of things you may want to ask for help from an attorney licensed in your state, a debt relief agency you trust, or advice from my friend Damon Day.

      Keep me posted.

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