The vast majority of collection opportunities within the student loan marketplace have been with state and federal government clients, private guarantors (like Sallie Mae), and private lenders (like large financial institutions).

So, what’s available today? That’s the topic of a webinar scheduled for Tuesday, 29 July 2014, at 2.00 p.m. Eastern, sponsored by FICO.



There are still large portfolios held by guarantors and private lenders, and the Department of Education’s portfolio isn’t getting any smaller. However, there are also a growing number of colleges and universities — including online and for-profit universities — that have collection needs including the issuance of their own credit to students. Many of these schools can no longer afford to offer students as much in scholarships, or write off loans that go unpaid, and the federal loan programs are not covering all of the costs.

Perhaps the biggest thing to remember, though, is this: student loan collections is not a quick path to success. If anything, it’s a steady one that takes a long time before seeing any returns on investment. I’m pulling a quote from a primer we’re working on here at insideARM: “Collection agencies need to make a long-term strategic decision to enter the private student loan market; this is not a way to make a quick buck!”

Tuesday’s webinar is free, and you can register by clicking here.

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