Dept. of Education to Stop Using Private Debt Collectors

  • Written by Jamie Johnson for Student Loan Report

student loanThe Department of Education will stop using private debt collectors to handle overdue loan payments. This decision came to light after a May 23 legal filing by department attorneys. In February, the department announced it ended contracts with several private collection agencies for giving borrowers inaccurate information.

Attorneys for the Department of Education asked the U.S. Court of Federal Claims to dismiss a lawsuit filed by several debt collection agencies.

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