Student Loan Collections Feed Link

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.

Student Loan Debt

Judge Sides with Government in Student Loan Debt Collection Contract Dispute Ruling

A judge in the U.S. Court of Federal Claims Tuesday dismissed a complaint against the Department of Education brought by student loan debt collection contractors that disagreed with the agency’s decision to end its relationship with some collectors while expanding its business with others. But the decision was narrow and is likely to be appealed, with additional questions needing an answer before the matter is finally settled.

DebtImage

Account Control Technology Foundation Releases “Beware the Debt Monster” Video forNational Financial Literacy Month

The Account Control Technology Foundation (herein ACT Foundation), a non-profit, charitable organization established by the founders of Account Control Technology, Inc. (ACT), has announced the release of “Beware the Debt Monster,” a short video aimed at building financial literacy by highlighting the dangers of monstrous or unaddressed debt.

Good-News

Collection Industry Gets Some Positive Attention in Media this Week

The ARM industry is used to bad news and negative media attention. But this week, there were a couple articles run in prominent media that cast the industry in a positive light. The first was a nice local profile of a collection agency and the second featured a defense of private collectors on the Department of Education’s student loan collection contract.

government-contracts

Collection Agencies Choose Sides in Busy Week for ED Contract Protest Case

This week saw a flurry of activity in the Court of Federal Claims case against the Department of Education over its decision to end student loan debt collection contracts with five collection agencies. The end result is a consolidated case that pits four collection agencies — with two others supporting as amici — against the United States and five other collection agencies on the contract.