U.S. Gov’t to Test In-House Student Loan Debt Collections, Cutting Out Private ARM Firms

The U.S. Treasury Department is readying a pilot program to take over the collection of some defaulted student loan accounts from the Department of Education, essentially removing the work from contracted private debt collection agencies. There is no official confirmation of the program yet, but multiple unnamed sources within ED and Treasury have discussed the plan with numerous media outlets. The Huffington Post had the story first and The Wall Street Journal independently verified some of the information. <more>