angrypuppy
Retired Number
Joined: 13 Apr 2001
Posts: 32754
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 Posted: Fri May 19, 2017 7:25 am Post subject: Americans Are Paying $38 to Collect $1 of Student Debt |
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As if the cost of education wasn't already too high, it is imposing an additional burden on both the student and the taxpayer:
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The federal government has, in recent years, paid debt collectors close to $1 billion annually to help distressed borrowers climb out of default and scrounge up regular monthly payments. New government figures suggest much of that money may have been wasted....
The government often pays debt collectors nearly 40 times what they bring in, federal records show. Take the government's rehabilitation program, which targets people who have defaulted on their debt—meaning they missed nine months of payments. If a borrower subsequently makes nine on-time monthly payments of as little as $5 during a 10-month period, their loans are returned to good standing and the default is supposed to be wiped from their credit reports 1 . But the CFPB found that more than 40 percent of these borrowers defaulted again within three years. |
https://www.bloomberg.com/news/articles/2017-05-19/americans-are-paying-38-to-collect-1-of-student-debt |
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