Department of Education Collections Feed Link

Department of Education Collections

The U.S. Department of Education currently has responsibility for all federally-backed student loans that go into default through its Federal Student Aid unit. In addition to using extensive internal resources to rehabilitate some borrowers, FSA contracts with 22 private collection agencies to help recover the debt. FSA updates the performance of each collection agency in a comprehensive report every month.

Debt Relief

$95.5 Million Settlement In Second Instance of Massive For-Profit Student Loan Forgiveness This Year

Yesterday, U.S. Attorney General Loretta E. Lynch announced a major settlement with Education Management Corp., the second-largest for-profit education company in the United States. Under the deal announced yesterday, EDMC has agreed to pay a $95.5 million civil settlement to resolve claims that it falsely obtained federal and state education funds, and forgive about 80,000 student loans.


Performant Earnings Announcement Hits Three Hot Topics

Performant Financial Corporation (PFMT), historically one of the Department of Education’s (ED) top performing private collection agencies, yesterday announced financial results for its third quarter ended September 30, 2015. The company also hosted a conference call to discuss the results. Third Quarter Financial Highlights Total revenues of $38.5 million, compared to $39.6 million in the […]

Rotary Phone

Collectors Calling on Federal Debt May Now Use ATDS to Dial Cell Phones?

Last week I wrote about the latest budget deal working through Congress, and its inclusion of a provision to allow those collecting federal student loans to call consumer cell phones using an autodialer (ATDS). That two-year budget has since passed the Senate Friday by a vote of 64 to 35, and was signed into law yesterday by President Obama. But you’re not going to want to turn on that autodialer just yet.


Department of Education Announces New Student Loan Regulations

The Department of Education (ED) announced earlier this week two final regulations they say will protect students from unreasonable fees, safeguard taxpayer dollars and expand the income-based repayment plan to millions of Americans. Addressing Student Loan Debt In June of 2014, President Obama issued a Presidential Memorandum directing the Department of Education to propose regulations to ease […]


Budget Deal Includes Autodialer Provision for Federal Debt Collectors

The latest congressional budget deal includes a provision to let companies collecting federal student loans (or other debts guaranteed by the government) collectors call cellphones using auto-dialers. A welcome boon to (a select few) collectors that have contracts with the Department of Education amid a sea of recent bad news, the move also highlights the double standard in the way lawmakers treat government vs. private debt.


Disadvantaged Higher Ed Entrepreneur Achieves Federal HUBZone Certification

Buffalo, NY – Pulcher World Management, LLC (PWM) today announced it achieved Federal HUBZone certification late last month, a distinction further qualifying the company as an excellent choice for any Federal Private Collection Agency (PCA) seeking to meet subcontracting requirements for a U.S. Department of Education (ED) task order. “I am very excited about the future […]

Graphs and file folder with label small business.

Dept. of Education PCA Program Still a Driver of Small Business Growth

The U.S. Department of Education (ED) Private Collection Agency (PCA) program remains an opportunity for small businesses despite recent wrangling over five contractor suspensions in March and a bid process for large (“unrestricted”) contractors still incomplete after two years. Goals have gone up over the last two years, with ED’s prime and subcontracting goals now at 20% and 33%, respectively.

government-contracts Makes Federal Debt Collection Report Available

Collingswood, NJ: has made available for download a free copy of a report the U.S. Department of Treasury (Treasury) provides annually to the U.S. Congress on Federal non-tax government receivables and debt collection activities of U.S. government agencies. offers subscribers insider access to the past, present, and future of government and student loan […]