The Department of Education said it's ending its relationship with private collection agencies tasked with recovering payments from federal student loan borrowers in default
The U.S. Department of Education said it is ending its relationship with private collection agencies that had been tasked with recovering payments from federal student loan borrowers in default to improve collections and provide borrowers with more support.
Richard Cordray, chief operating officer of the department’s office of Federal Student Aid, said Thursday that collecting on defaulted loans would now be handled by five private contractors hired by the department last year to provide customer support to borrowers as they navigate the repayment process.
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