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Trump Administration Welcomes Back Student Debt Collectors Fired by Obama

A pair of private collection agencies fired by the Obama administration have accepted the Education Department’s offer of new contracts to recoup past-due student loans, but the agreements are in limbo as the government wades through a messy court battle.

Enterprise Recovery Systems and Pioneer Credit Recovery were among five companies whose contracts the government cancelled in 2015 after an audit showed them giving inaccurate information to people trying to get their student loans out of default. The companies said the evaluation was arbitrary and flawed for drawing conclusions based on excerpts from a handful of calls, and four of them took legal action against the department.