I have been hearing more and more stories about the National Collegiate Student Loan Trust (NCSLT) suing student borrowers well after the statute of limitations has expired. In my state, Indiana, the statute of limitations is 6 years from the time the loan goes into default or when the last payment was made, whichever is later. In some states, it is 5 years.
Many people mistakenly believe that there is no statute of limitations for any student loans. Actually, there is no statute of limitations for government-backed student loans; but the ordinary contract statute of limitations applies to private student loans.
In addition problems with the statute of limitations, we are aware of problems with the assignment of some NCSLT loans as well as lack of proof of proper notice to the cosigner in cosigned student loans. In addition, in some cases it may be inappropriate to sue the cosigner in the same place as the chief borrower.
If you are sued by NCSLT, please call our office if you are in Indiana. If you are outside of Indiana, contact the National Association of Consumer Advocates at www.consumeradvocates.org for a referral to an attorney in your area.