Latest News

Consumer Group Criticizes Education Department’s Debt Collectors

The Obama administration should radically restructure the office of the Education Department that handles student aid, and it should stop paying private debt collectors to chase borrowers who have defaulted on their student loans, attorneys at the National Consumer Law Center said in a report Wednesday.

The center’s report is the latest in a long series of critical reviews taking aim at Education Secretary Arne Duncan’s management of the Office of Federal Student Aid (FSA), and specifically the office’s troubled oversight of the roughly two dozen debt collectors it pays nearly $1 billion annually to help distressed borrowers make good on their defaulted debts.