Student loan collection activity is extremely active and ultra-competitive. The below-cited Department of Education "Performance Report" measures outsourced loan collection by 1) total dollars collected; 2) total accounts serviced; and 3) administrative resolutions [whatever that means]. The Department of Education awards "points" to companies achieving the highest figures in each category. NCO, the most recent winner, collected over $9,757,000.00 for only two months, July and August of 2010.
This article emphasized the impact of including "rehabilitated loans" (resumed payments in exchange for a promised correction of the student's credit report).
NCO is the largest "accounts receivable management" company on the list. I checked out its website. It's a technology driven conglomerate that spans heavily across many business sectors.
The student loan collection markets involve hundreds of millions of dollars. Student loans fall under "consumer debts" as defined by the Fair Debt Collection Practices Act (FDCPA). NCO, Van Rue, and Pioneer, the Report's top three earners, are debt collectors under the FDCPA. Student debtors are an underrepresented market. Most student debtors do no know how to respond to aggressive collection tactics such as administrative wage garnishments and tax refund intercepts.
My colleague, Joshua R.I. Cohen, Esq. of Connecticut, concentrates in representing student loan debtors with an eye toward investigating and prosecuting FDCPA violations that occur when these collectors overstep their boundaries. If you have any questions relating to the collection of your student loan, see Josh at: www.TheStudentLoanLawyer.com.