At least two private debt collection agencies have filed notices with their states notifying officials that they will be forced to lay off employees in the wake of the U.S. Department of Education’s announced winding down of collection contracts with five of its vendors. Separately, President Obama today is unveiling a Student Aid Bill of Rights that may further impact the student loan collection market.
Two student loan collection agencies, previously under contract with ED, have filed WARN notices with state labor departments. Coast Professional filed its notice last week in New York telling state officials that as many as 260 jobs will be cut between two call centers effective late last week. Coast expects those layoffs to continue into April and it may be forced to close one of its offices.
National Recoveries, Inc. also filed a notice with Minnesota labor officials warning of layoffs, but it did not specify how many jobs could be impacted.
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