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Student Loan Lawsuit DISMISSED

Birdman7
Super Contributor

Re: Student Loan Lawsuit DISMISSED

Yes that is a positive, but you still need to check what your statute of limitations are so you know whether or not it is judicially actionable. And you want to take care not to restart the statute of limitations if it’s a private loan. Good luck!

Message 11 of 14
bass_playr
Frequent Contributor

Re: Student Loan Lawsuit DISMISSED

Sounds to me like NCSLT dismissed it before trial themselves, which a plaintiff can generally do.  It does not mean they will come back and try again, but it also doesnt mean they wont.  The student loan shell game has been happening for a while now, and it's basically the same scam that has happened in the mortgage industry, with a notable difference--people seem to have had far better luck defending against student loan suits than against foreclosures.  The same basic principles of promissory notes often apply but for some reason the courts allowed the banks to get away with a ton of shady stuff.  

 

That being said, there are some things you need to be aware of.  

 

1--NCSLT is in hot water with the CFPB as we speak.  CFPB issued a consent order against NCSLT in June 2020.  It would appear that all 800,000 student loans in the trusts are to be audited, and if any are found to be deficient in paperwork and/or proof of claim, then NCSLT is prohibited from suing OR collecting on those accounts.  Read more here:

https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-national-collegiate-stud...

 

2--Depending on the specifics of your situation, it is probably more likely that the debt was not dropped, just the lawsuit.  NCSLT is actually not one trust, but a group of 15 trusts that basically only exist on paper.  They have no actual employees, they hire debt collectors to service the accounts for them.  If you did not move for dismissal, then most likely the plaintiff dismissed its own suit.  I would check the records of the case at your court clerk's office, you should be able to see how it came to be dismissed.

Message 12 of 14
MDG099
Valued Member

Re: Student Loan Lawsuit DISMISSED

I spoke to my attorney and looks like the statue of limitations is 7 years. That would bring me to 2023. 

if not further lawsuit is sought from NCSLT would this debt simply fall off around the 7 year mark? 

Message 13 of 14
Birdman7
Super Contributor

Re: Student Loan Lawsuit DISMISSED


@MDG099 wrote:

I spoke to my attorney and looks like the statue of limitations is 7 years. That would bring me to 2023. 

if not further lawsuit is sought from NCSLT would this debt simply fall off around the 7 year mark? 


@MDG099 that's a rather long statue of limitation, what state is that from out of curiosity? And the 7-year reporting limitation has nothing to do with the judicial right of action statute of limitations, & yes it will still have to be excluded from your report after the typical 7 years whether they sue again or not, assuming it was not federally backed with an extended reporting period. 

Message 14 of 14
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