Don Taylor is Sr. Vice President of Sales for Array Services Group, Inc. Through J.C. Christensen & Associates, Inc., an Array company, the company offers professional services in debt recovery and accounts receivable management For more information on JCC, visit www.arraysg.com.
Before 1993, student loan debt collection was basically the same as any other asset class: collectors tracked down a student loan debtor and tried to get them to pay in cash. But after a major legislative change that year, student loans became a very special market for debt collection with advanced tools at collectors’ disposal that do not exist for any other type of debt.
Student loans became exempt from statute of limitation laws as a result and debt collectors got Administrative Wage Garnishment (AWG) and consolidation as new tools. While all three had a profound impact on student loan collections, consolidation is currently the most widely-used provision of the 1993 law.