Pioneer and ConServe Leading Collectors for ED in Second Quarter

The two overall top-performers on the Department of Education’s student loan collection contract lead the way for their colleagues in the second quarter, ED reported in data released last week.

Pioneer Credit Recovery was the leading collection agency on ED’s unrestricted contract, reserved for larger companies. Pioneer dominated the competition in the second quarter bringing in $64.5 million in collections. The next closest ARM firm, NCO Group, collected $49 million. Pioneer also had a large lead in the performance scores.

ED’s performance scores are based on a weighted average of performance metrics, including total dollars collected, total accounts serviced and administrative resolutions. The scores are released each month, but compiled for internal scoring on a quarterly basis. Final quarterly rankings determine bonuses and account placement levels.

Continental Service Group (ConServe) was the top scorer and collector on the small business set aside in the second quarter, collecting $21 million on behalf of the Department of Education.

Both Pioneer and ConServe lead their respective divisions over the length of the contract. In the 52 months the current contract has been in force, Pioneer has collected $780.2 million and ConServe has brought in $202.2 million.

The current contract, comprised of 17 collection agencies – 12 in the unrestricted category and five on the small business set aside – has brought in $5.97 billion for ED.

Recovery rates on the unrestricted contract were up in the second quarter of 2009 compared to the same time period in 2008. In Q2 2009, the unrestricted agencies averaged a 3.66 percent recovery rate compared to a 3.26 percent rate in 2008. Rates were slightly lower on the small business set aside, with a 2.81 percent rate in 2009 compared to a 2.83 percent rate in 2008.