Are Private Student Loans About to Be Wiped Out?

– Hey everybody, it's John Skiba from the Arizona Consumer Law Group I'm also the founder of the Consumer Warrior project which is a resource for people who are representing themselves in court and dealing with debt type issues

On today's video I wanted to talk about an article that was in the New York Times yesterday that had to deal with private student loans, and the title of this article was pretty catchy, a lot of click bait going on here, saying that nearly five billion dollars in private student loans may be wiped out And what the article was talking about specifically were those private loans that are held by the National Collegiate Student Loan Trust And what this National Collegiate is essentially is the owner of various private student loans that were taken out by banks and then sold to investors and kept in this trust Now National Collegiate has a lot of problems with the way that they pursue their particular student loans And I can tell you that, this article talks about all the problems that they're having with trying to prove their cases in court and establish ownership and it actually reminds him a lot of the mortgage crisis from 2007, 2008 time period

And I can tell you that this is nothing new to me and my office because we deal with National Collegiate Student Loan Trust cases all of the time and frankly their cases are somewhat of a mess We don't see the proper documentation They often don't have witnesses who show up for hearings, and what they are really banking on is that people will just allow these things to go into default, which unfortunately with a lot of debt collection law suits, it's usually over 90% of these cases do go to a default So if you have private student loans and if they're held by National Collegiate Student Loan Trust and if you're, particularly if you're being faced with a law suit from them, it's important to know that this is something you do not want to ignore because one, if you do you're going to end up with a default judgment against you, and then they can garnish wages and levy bank accounts and all those types of things But if you respond to it, like I said what we have found and what the New York Times is confirming in this article, is that their cases are just a mess

I had a case recently where National Collegiate filed what's called a Motion for Summary Judgment They were asking the court to enter judgment We contested it The judge set it for oral argument, and the oral argument lasted nearly an hour and I didn't say a word The reason why I didn't say a word is because the judge grilled National Collegiate's attorney for nearly an hour with all the problems that they had in their case

Particularly to the documentation not being correct, the documentation that was missing Basically the stuff that they were providing not being legible So a lot of problems with National Collegiate Student Loan cases and if you get sued for them I have, by them, I have been telling clients it may be your lucky day because student loans typically don't go away in bankruptcy, even private student loans typically don't go away in bankruptcy, and so they're very difficult to get rid of Well if National Collegiate brings a law suit, you may be able to get rid of it because their cases are in such disarray that there are often times when you have very good defenses and can really press them on those issues, press them on their lack of evidence and get the case thrown out So I put together a little article on this, you can actually read the New York Times article, if you go over to skibalaw

com/studentloan I put the URL there on the, here on the screen, skibalawcom/studentloan or if you want to learn more about just generally debt collection type issues If you're thinking of possibly needing to file for bankruptcy or if you're being sued right now, you can head on over to consumerwarriorcom I have hundreds of articles, more videos like this that can give you some advice

I even have some free downloads, templates, things for people who are representing themselves, even courses as far as things that can help you in dealing with your debt problem So that's going to do it for today I appreciate ya watching