iStock By Danielle Douglas-Gabriel Danielle Douglas-Gabriel Reporter covering the economics of education Email Bio Follow February 28 A contractor for the Education Department is suing the federal agency, alleging that billions of dollars in defaulted student loans go uncollected because the government is not lining up new private debt collectors.
The company claims that despite a court ruling barring the Education Department from canceling the collection contract, the agency is circumventing the decision with three new solicitations for student loan servicers. Those requests for proposals seek to procure, among other things, default collection services.
Student loan default rates are far outpacing the rate of collection, and it could get worse as the Education Department plans to eliminate seven of the collection agencies in April, according to the complaint. Colleen Campbell, director for postsecondary education at the Center for American Progress, argues private collection agencies prioritize recovering money over providing struggling borrowers with sustainable solutions for managing their loans. Everyone could actually win once the Education Department moves forward with plans to revamp the collection system, Campbell said.
Well, let’s just give the rich another 5TRILLION$ in tax cuts, burden the middle class & poor into the ground. That’s the Republican dream.
....and I don’t want MY tax dollars repaying them. They incurred the loans.....they need to repay them.
The loans should not exist to begin with. We the government should invest in our children's education and pay for it with a higher tax on the rich.
Since Netflix, Amazon, and GM didn’t pay any federal income tax, I vote they pay for all this.
Collect! The students took out the loans and received the benefits. Now it's time to pay their fellow citizens back.
Yes, we knew that already. But the people who have been paying theirs; get treated like an old customer at DirectTV...
How bout we encourage people to pay their debts? I did, it was very hard as i did not immediately fins good work, but i did it. Why can’t these people?
But Bernie2020 said that those loans will be forgiven.
The WWE loves dollhairs too
DaniDougPost guess all degrees are not created equal! College degree does not equal educated
Good.
If Jeff Bazos will pay it all off, we promiss to delete all the copies of all the pictures and texts he sent to his mistresses. Oh, you didn’t know there was more than one?
This is the beginning of a tsunami similar to the housing market implosion. 1.5 Trillion dollars in non-dischargeable debt is an untenable and unsustainable construct.
Blood from a stone. Driving more people into life below the poverty line. But billionaires get tax enrichments as payback for electing a candidate. The prosperity razzle dazzle is crap. Follow the money boys.
Good
and?
As it should be.
The money that banks were lent... Ask the banks to pay them back by loan forgiveness ... Right
A good solution to student loan defaults would be ubiquitous forgiveness.
Bernie loves this! Wapo can hire all of them!
I think some blame should go to the colleges; they encourage students to study whatever they want and stick around forever because it's an endless revenue stream for them, I'd say provide government funding strictly based on placement of graduates in jobs universities
This should be given to Jeff Bezos.
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Student Loan Debt Statistics In 2019: A $1.5 Trillion CrisisConnecticut has the highest average student loan debt per student from the Class of 2017 Makes sense its Yale ,qpac and uconn system - not a deal to be had. For most careers, you don’t have to go to an expensive school. Some smaller universities and state schools can actually be better because of smaller class sizes, job readiness, etc. Terrible state. Sending kids to college is a sin
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Young Americans’ debt tops $1 trillion as student loans pile upDebt among 19- to 29-year-old Americans exceeded $1 trillion at the end of 2018, according to the New York Federal Reserve Consumer Credit Panel. That’s the highest debt exposure for the youngest adult group since late 2007. But at least their liberal arts degrees will give them promising careers as communist rabble rousers. education is good but u have to have a plan , you cannot go in majoring in greek mythology an expect to get a job to pay off your loan,if you want to be a doctor super but make sure doctors are in demand before you go, kids growing up that just expect things dont understand this bad decision making
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