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Student Loan Collections

Debt collectors work with universities, colleges and private lenders to collect student loans. For education loans backed by the federal government, the U.S. Department of Education has a clearly-defined collection program that uses private collection agencies. Recent changes in federal law will shift all previously federally backed loans to direct loans from the federal government, cutting private lenders out of the equation.

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 […]


The Effect of Switching from a Brunner to a Totality Test for Student Loan Bankruptcy

Student loans are making headlines, whether they’re about the size of the debt, the companies collecting the debt, or the hardships faced by recent graduates paying their debt. Earlier this week, MarketWatch published an article highlighting two Supreme Court petitions filed by men trying to discharge their student loan debt, bringing the issue front and […]


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.