March 04, 2021
Summary: If you're being sued by EduCap for student loan debt, you'll need a strong defense. Find out how you can stand up for yourself and win your debt collection lawsuit!
Are you being sued by EduCap for outstanding student loan debt? Then you're going to want to stick around to hear what we have to say. Being sued by anyone can be a trying time. But it's likely to feel even more stressful when it's by a company that touts itself as “Education Finance and Philanthropy.”
EduCap can call themselves whatever they think makes them look better. But bottom line, they're a debt collection company like any other. You see, EduCap buys outstanding student debt to make a living. Not an honest living, mind you, but a living, nonetheless.
Now that you've taken a peek behind the wolf's clothing, let's go ahead and rip the entire thing off so you can see what you're really up against.
EduCap was initially founded by a Catholic priest in 1987 as a way to help students get the funding they needed to attend college in the District of Columbia. Specifically, students who didn't qualify for government aid. They came here to take out loans for college and pay them back later.
Father John Whalen designed his organization – not yet named EduCap – to get private funding for students who were otherwise unable to attend college. However, a year later, Catherine B. Reynolds came aboard as the chief accountant and changed the name to EduCap.
A corporate Gulfstream V aircraft and some questionable business practices later, and EduCap ranks right up there with other creditors. That's not to say they haven't helped some students throughout their existence.
But when you look at their astronomical interest rates and high-risk agreements, it makes you wonder what their angle is. Of course, when you examine their tactics in seeking debt, it becomes clear that it's all about the money and very little about actually helping students get an education.
The good news is that this greed may end up benefiting you in court. Let's see what needs to be done on your part to ensure victory.
All right; first things first. Now that we know what EduCap is all about, it gives us a better idea of how to deal with them. As a buyer of student debt, EduCap has the unfortunate duty (fortunate in your case) of producing some very crucial evidence.
First, they have to be able to show the court that they are now the legal owner of your debt. This means proving that they purchased your student debt from its original source and are now legally obliged to collect on it.
Second, EduCap has to produce the original source documents, commonly referred to as the loan itself. Sounds straightforward enough, right? For many collection agencies, it is. But for EduCap, history shows that they sometimes have a hard time providing sufficient information to the court.
Sure, they are likely to have some documentation. But will they have all of the required documentation? That remains to be seen. Unless EduCap can do so, you have a very good chance of beating them in court.
However, you need to play your cards right because EduCap is known to demand full repayment. Whereas most debt buyers will settle for a fraction of the loan total, EduCap wants it all.
This seems a bit unfair; selfish, even. After all, they likely bought your loan for pennies on the dollar. Anything they get from you is sure to be straight profit. But nope. EduCap wants to wring every cent from you that they can get their hands on.
Ideally, however, this will bode well for you in the end. How, you ask? Let us explain.
Had EduCap merely asked you to settle by paying a fraction of your loan total, they could have gotten some money from you, made a profit, and called it a day. The problem, though, is that EduCap is likely to want the complete loan total, so that means going to court.
EduCap is probably banking on a couple of things. One: that the judge will award them the victory based on what little documentation they have. And two: that you won't know your rights and will roll over for them and their demands.
There is a possibility that the judge will side with EduCap if you don't know your rights. And even if you do know them, you're going to need to know exactly what to say and when to say it. If EduCap is putting pressure on you in court, it's understandable if you buckle.
This is where an educated attorney can defend you in court and make sure that this doesn't happen. As such, you will benefit greatly by hiring an attorney to represent you in this matter.
Again, EduCap is most likely to present a fair amount of documentation to the court. An attorney can effectively weed through this information and ensure that neither you nor the court plays into it.
Unless EduCap can produce irrefutable evidence that they are now the proud owner of your outstanding student debt, and they can show the court the original debt, your attorney can bring this to the court's attention, get awarded a judgment, and you'll be on your way.
Without a lawyer present with you, the opposing counsel could seek a continuance to gather the paperwork they don't have. And they might just get it if you don't have counsel to put a stop to it. At that juncture, you'll get the judgment and won't have to pay EduCap anything.
Remember, they very likely could have gotten a partial settlement from you and made a profit. Now, they're out everything, court costs included.
As sure as you might feel in winning your case against EduCap, you never know what will happen once you get inside the courtroom. Having a qualified student debt attorney in your corner will dramatically improve your chances of getting a positive outcome.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
Here's a list of guides for other states.
Being sued by a different debt collector? We're making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.