Americans Are Paying $38 to Collect $1 of Student Debt
Student loan defaults are a bonanza for the debt collection industry.
Fix this shit... Maybe 'free' taxpayer education stipends too all qualifying (academically) students would be a better investment?
Quote:
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Even when borrowers don't default, debt collection efforts often yield little. Close to 80 percent of borrowers who rehabilitate their debt make the minimum $5 monthly payment, according to a 2015 estimate by the National Council of Higher Education Resources, a lobbying group that represents student debt collectors and servicers. That means the Education Department is paying its debt collectors up to $1,710 per borrower to collect around $45, regardless of whether the borrower continues to make her payments.
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https://www.bloomberg.com/news/artic...f-student-debt