If you owe student loan debt, you may not even realize that a student loan trust owns your debt and not the bank that you originally borrowed from. It is common practice for big name banks to sell your student loan repeatedly until your rights are lost in the mix.   

Student loan trusts often hire attorneys and debt collectors to harass and threaten students into paying debt that is not legally owed. One example is National Collegiate Trusts and Transworld who were forced to pay $21.6 million in penalties for prosecuting illegal student loan debt lawsuits. Some of these debts had no chain of transaction or proof of debt while others had reached the statute of limitations and were too old for them to legally collect on.

If you get a call from an attorney or debt collector about your student loans, contact us before paying anything. Because of the student loan trusts scandal, you may not legally owe the debt.  Our LawZebra attorneys can help you find the way out from under student loan debt. 


Student loan trusts claim to own billions of dollars in student loan debt but often can’t prove it. They use debt collectors and attorneys to harass, threaten, and lie to students about their loans even though they have no legal ground.

Student loan trusts often can’t prove that they own the right to collect on student loan debts.  Students in default to student loan trusts can successfully sue them. Your case can be dismissed and your loan legally discharged.

Talk with our experienced attorneys to find out if you have a case. Don’t let student debt keep you stuck in a place of hopelessness. Contact us for a free consult to see if you might have a case.


Student loan trusts use outright fraudulent and intimidating tactics that are against the law in addition to suing students for debt they do not owe. Some of these cases are won by students for these reasons:

  • Chain of assignment: Debt collectors do not have documentation to prove who owns the student loan.
  • Statute of limitations: The debt is time-barred, but collectors take students to court anyway to try to collect.
  • Signature Page: Debt collectors do not possess the student’s signature page or original paperwork.
  • Bankruptcy: The debt collecting agencies sue for money that is no longer owed due to a bankruptcy. Debt that was already discharged is part of their suit against you.

Schedule your free online consultation with a LawZebra attorney today or call us at (801) 820-9955 to find out what YOUR options are. 


If a student loan trust can’t prove ownership, it is not a legally binding debt. If you are in default and receive a letter demanding payment:

  • Find out from your servicer who owns your loan now.
  • Require an account payment history to verify the date of the last payment.
  • Require a chain of service document.
  • Require proof that you owe the debt in the form of your original signature page.
  • Negotiate with the bank that owns your loan. There are times when the proper argument can convince a student loan trust to settle with you rather than take you to court for default.

Contact us or call a LawZebra Attorney experienced in student loan trust debt discharge today at (801) 820-9955 or contact us online.