Obama Has Hired An Army Of Debt Collectors To Go After Student Loan Deadbeats
When students default on their federal loans, debt collectors are hired out just like any other to track them down and wrangle some kind of payment.
Problem is they may be asking borrowers for more than they should have to pay under federal law, Bloomberg’s John Hechinger reports:
“With $67 billion of student loans in default, the Education Department is turning to an army of private debt-collection companies to put the squeeze on borrowers. Working on commissions that totaled about $1 billion last year, these government contractors face growing complaints that they are violating federal laws by insisting on stiff payments, even when borrowers’ incomes make them eligible for leniency.”