There is no question that we are in the midst of a major student loan crisis in this country. The situation is very bleak. College education costs have spiraled out of control and unsuspecting consumers are now straddled with enormous amount of student loan debt. It used to be that you paid a reasonable amount of money to be educated and if you studied hard you would be rewarded with a high paying job. Well those days are gone. Now we have highly educated young adults with multiple degrees that are grossly underemployed. They are making no more or perhaps slightly more than their friends and companions with just a high school education. Ironically, the college educated friend is worse off because they have tons of burdensome student loan debt that they can’t afford to pay. There are programs available to help individuals deal with federal student loans. Though these programs are far from perfect, they do provide some meaningful assistance to those struggling with student loan payments. There are no similar programs to deal with private student loans. As a result, there are some private student loan debt purchasers that have flooded the courts with lawsuits that result in mass implementation of wage garnishments and seizure of assets. If you have a private student and are being sued to collect this type of debt, you need to take action.
I have started to notice a large increase of private student loan lawsuits being filed in Rhode Island by National Collegiate Trusts. Most of these lawsuits are being filed in the Rhode Island Superior Court. This company has inundated many state courts systems with thousands of student loan lawsuits attempting to collect on private student loans assigned to them. But in many states, creative consumer attorneys have fought back and begun to examine the paperwork filed in these cases to challenge the allegations in the court documentation. Bottom line, this company may not be able to prove that you actually owe the money to the company. Unfortunately, many Rhode Island individuals sued by this company never respond to the court complaints or hire a lawyer to review their options and therefore judgments are summarily granted against the borrower. Once this happens, all the defenses you might have to payment pretty much disappear. Bottom line, if you are being sued by this company, do yourself a favor and speak to someone who is familiar with possible defenses to private student loan lawsuits. I am lucky that a long time friend of mine attorney Richard Gaudreau of New Hampshire has educated me on these issues. So I am now ready to help educate you.
Christopher M. Lefebvre Esquire