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Defaulted Student Loans on Rise

An increasing percentage of college graduates have student loans.  In today's economy, it is hardly a surprise that the amount of loans and the inability to repay them are rising.

The amount of outstanding  student loan debt has climbed over $1 trillion, easily exceeding credit card debt.   Defaulted student loans have more than doubled since 2007.  This has raised red flags in Washington.  In March, the Obama administration proposed changing how it regulates the student-loan debt collectors it hires. Link to article.

Collectors for student loan providers can earn a substantial income.   For example -
 • Once collector earned $454,000 in one year for collecting student loan debts for Educational Credit Management Corporation (ECMC).  
 • The CEO of ECMC -- a former executive with SLM Corp. (Sallie Mae), the largest U.S. student-loan company, earned $1.1 million in 2010, making him the highest-paid head of a guaranty agency.  
 • The person who heads Indianapolis-based United Student Aid Funds Inc., the largest guaranty agency, received$775,000. Learn more.

SmithMarco, P.C., has over 30 years of combined experience practicing law protecting the rights of consumers around the country.   Contact us for a free case review to determine if your personal debt collection consumer rights were violated.

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