For the first time ever, student loan debt has surpassed credit card debt as student loan debt reaches the $1 trillion mark per a recent Bloomberg article. Student loan debt collection has become big business. Contracted student loan debt collectors’ profits surpass $1 billion in 2011 alone! Little wonder when these private contractors make commissions as high as 20% or even 30% after a loan goes into default. Blackwater should consider expanding their profitable business from military contracting to include student loan collection work.
Who knew collecting debts from poor students could be so profitable. Bloomberg News reported last month that approximately 5 million federal education loans are in default.
What most students or graduates don’t know is that the government hires private companies as debt collectors for this defaulted student loan debt. And these debt collectors often ignore the law when doing so. FDCPA violations abound. Debt collectors are the subject of more complaints to the Federal Trade Commission than any other industry. We recommend student loan borrowers go on the offense and hire law firms to go after these debt collectors. These cases are handled on a contingency fee basis with no fees up front.
To learn more about the types of conduct that are violations of law, please contact Christie D. Arkovich, P.A. for a free consultation.
Please also see our Student Loan Survival Center for information on how to arm yourself against student loan debt collectors.