Recently released statistics show that student loans are reaching new heights in both costs and the amount of loans in default. With so many students unable to pay their loans over the last year, debt collectors have become increasingly focused on collecting money, often with help from the federal government, according to The New York Times. In total, there are approximately 5.9 million people across the United States who are at least 12 months behind in their payments. Also, one out of every six borrowers is in default. The grand total for these problems is $76 billion in defaulted loans across the nation. To help recover this money, the federal government paid more than $1.4 billion to debt collectors last year to track down defaulters. For federal loans, the government can pursue payment through various methods, including seizing tax refunds and garnishing paychecks. With so many unpaid loans, collection agencies have found a new area to make money. During the last fiscal year, $12 billion was collected on federally backed loans. Additionally, loan servicers have an incentive to keep borrowers in good standing, with collectors paid $2.11 a month for each borrower in good standing, but only 50 cents a month for delinquent borrowers. Riverside fair debt collection lawyer Howard D. Silver is dedicated to protecting consumers from unfair tactics and harassment by debt collectors. For more information on how the legal team at the Law Offices of Howard D. Silver can help please call (855) 341-2611.
Skyrocketing Student Loan Debt Brings Increased Attention from Debt Collectors
Serving Los Angeles, Riverside, Ventura, San Bernardino Counties & Nearby Areas of California
Wednesday, February 18, 2015