STUDENT LOAN PAGE UNDER DEVELOPMENT ! ON LINE JAN 2, 2018
Student Loan Debt: A $1.3 Trillion Boondoggle in 2018 !
Although it’s a little reported reality, the truth is that we are lurching towards a student loan debt crisis comparable to the mortgage crisis that began several years ago. In fact, student borrowers have defaulted on billions of dollars in private student loan debt. And now, thousands of student loan lawsuits are being filed every year by creditors against former students in every state in an attempt to collect those billions of dollars in outstanding private student loan debt.
And, unfortunately, most borrowers who are sued based upon having
defaulted with respect to their student loans may assume, incorrectly, that the
outcome of the case against them is an open and shut affair and that they are
destined to lose in Court and will eventually have their assets seized and their
But the truth is that many of these lawsuits are burdened with so
many factual and legal errors that they are unsustainable and subject to being
dismissed out of Court before the creditor gets a dime. And, in fact, we have
found that there are a number of effective legal strategies that help our client6s
fend off and successfully defend many of these student loan lawsuits and head
off many of the judgments that our clients otherwise thought were a foregone
Here are five solid and complete defenses which can and have been successfully used to defeat student loan collection cases.
First, the creditor must prove that it owns the student loan debt or the case must be dismissed. This is your First Defense. And dismissal often happen on this basic in these lawsuits because most private student loans are transferred by the original lender to investors and trusts funds through a process called securitization, in which thousands of these defaulted loans are pooled together and then sold as one package to an entity set up just for this purpose. Because of this loan bundling and packaging, the final holder of the debt, the entity who might ultimately sue you – say Navient Student Credit, National Collegiate Student Loan and SLM Private Education Loan - often has difficulty in proving that the “chain of title” remained intact sand can be followed through every ownership transfer. And this can be a major headache for debt holders.
As a Second Defense, you should know that “business records”, which
includes all the various documents that might be used against you I court to
prove the case against you, are inadmissible hearsay (meaning that they cannot
be used in court) unless there are specific statutory provisions, rules and/or
case precedents which allow them to be used in Court absent you.
In fact, New York State has precise rules about what kinds of
business records, such as promissory notes and payment ledgers, can be entered
into the record in court. And there are rules about who is qualified to vouch
for the authenticity and accuracy of such records. New York State courts
require direct or firsthand knowledge of how the records were created. This means
that they must present a witness who can establish what is known as a foundation
for the introduction of business records because, otherwise, all of these
documents are merely “hearsay’ and, again, not allowed in Court to be used
against our clients.
As a Third Defense, the lawsuit must be started before the relevant statute of limitations for collection expires. And, therefore, you need to know and the first thing we determine is whiter or not that statute of limits has expired on your debt.
Now, generally speaking, federal student loans are exempt from time limits on when they can be collected. However, private loans are not and can be dismissed when the lawsuit is not started against you in a timely fashion. So, if you knot made a payment on your outstanding student loans (or any loan or line of credit for that matter) After years without payment — the exact length of time does vary according to the applicable state law — student loan collectors may in fact lose their right to sue to collect the money through a lawsuit.
In New York, the statute limits is, generally speaking, six
years from the date you made the last payment. So, if you are not sued within
that time period, or possibly a shorter period, depending on where the original
creditor was located, the student loan collector will unable to collect the
money from you at all. So, check these statues
or contact us and we will di it for you to see if you can utilize this defense.
As a Fourth Defense, it is important to determine if the student
loan collector is licensed and/or registered to do business in the State in
which you live, and if such licensing or registering is a statutory requirement
to maintain a student loan lawsuit absent you.
For example, New York State requires “foreign corporations” —
those based in other states — to register to operate in the State. Failing to
do so can prevent creditors from using the court system here. One judge in New
York, for example, dismissed four lawsuits brought by securitized investment
trusts owned by Navient because the entities were not registered to do business
in the New York state. “Plaintiff lacks capacity to sue,” he wrote in one of
the rulings, SLM Education Finance Corporation v. Gray.
(Civil Court of the City of New York)
And, finally, as a Fifth Defense the student loan collector often refuses or simply
fails because it is actually unable to comply with court requests for
additional information.When courts and we, as defense attorneys, ask creditors to
provide additional documents, or produce witnesses to testify about the claims
they are bringing against our clients, the creditors often simply withdraw
They just playing the numbers and dialing for dollars, so to
speak. In other words, if these student
loan collectors are challenged, and documents proving the claim demanded by the
Court or defense attorneys, the creditors often cannot provide the information,
and the cases are eventually fiven up or dismissed. For this reason, it is
always important to challenge these claims in Court and force the collectors to
“put up or shut up”, which is what we are doing here at the Credit Card Defense
Center every day on behalf of our clients.
So, to summarize then, remember that you probably do have some
defenses to these kinds of student debt lawsuits even when it seems, at first
glance, that you do not have any way out. Again, to summarize, the best defense
that we can use to help you includes showing that :
1. The student loan collector cannot prove that it owns the debt.
the “creditor’s” business records are not admissible in Court.
The debt is beyond the statute of limitations for collection
The “creditor” is not licensed to do business in the
The “creditor” failed to comply with court and defense lawyer requests
for additional information.
Your Best Bet?
Hire Experienced Credit Card Defense Attorneys Now
Experienced CREDIT CARD DEFENSE LAWYERS know what questions to ask and what discovery documents to request to possibly get your case dismissed and give you the very best opportunity to get the best outcome by objecting to the improper use of hearsay evidence against you, determining whether the debt is time barred against collection by a statute of limitations and whether or not you were afforded due process in the ways you were served with the summons and complaint in the first place.