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Defaulted Student Loans on Rise

On Behalf of | Jan 30, 2012 | Consumer Protection

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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