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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.
Recent changes to the system that tracks recovery performance in the Department of Education’s (ED) private student loan debt collection contract may have resulted in either overpayments or underpayments to the 23 collection agencies on the contract, according to a report from ED’s Office of the Inspector General.
For the second straight quarter, the percentage of Americans with at least one account in the third party debt collection system hit an all-time high in the first three months of 2013. Close to 15 percent of consumers have an account being worked by debt collectors.
In her first standalone bill introduced in the U.S. Senate, Elizabeth Warren (D-Mass.) offered a bill Wednesday that would slash the interest charged to federal student loan borrowers to the same rate paid by financial institutions.
The bill is a preemptive solution to a student loan interest rate hike expected in July.
Account Control Technology, Inc. (ACT), a national leader in delivering debt management and recovery solutions, is pleased to announce it has formally established the Account Control Technology Foundation (ACT Foundation). The non-profit, charitable Foundation was set up at the behest of ACT’s founders, Dale and Debbie Van Dellen, to support education, build financial literacy, fund vital charities and provide community support.
Performant Financial Corporation (NASDAQ: PFMT) Tuesday filed a registration statement with the Securities and Exchange Commission with respect to a proposed secondary public offering of 6,500,000 shares of common stock on behalf of certain selling stockholders.
The issue of students and student loan debt will probably be perennial: education costs are increasing; student loans and private loans are almost the norm.
Delta Management Associates, Inc. (Delta), a premier provider of tailored recovery solutions to the debt management community, is pleased to announce the promotion of Christopher Riordan to President.
Cutting commissions to the collection agencies who collect on these unpaid debts isn’t the same thing as helping students not fail financially. Collectors are an easy “villain” to point to; however, the issue isn’t really the collectors or the commission. It’s poor financial literacy on the part of students and parents who bite off more debt than they can chew.
At a scheduled field hearing in Des Moines, Iowa Thursday, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray announced the expansion of its Consumer Complaint Database and the release to the public of roughly all complaint data it has collected through its Consumer Response complaint system.
Enhanced Recovery Company, LLC (ERC) announced today that it is expanding its reach into the student loan industry with the addition of one of the largest student loan organizations in the country. Additionally, significant investments in the technology platform to service this new market have also been made by ERC. Collection efforts on government guaranteed [...]