Debt Collectors Hunt Student Loans

    People are led on a tour group at the campus of Harvard University in Cambridge, Mass. Thursday, Aug. 30, 2012. Dozens of Harvard University students are being investigated for cheating after school officials discovered evidence they may have wrongly shared answers or plagiarized on a final exam. Harvard officials on Thursday didn't release the class subject, the students' names, or specifically how many are being investigated. (AP Photo/Elise Amendola)

    Elise Amendola / AP Photo

    Debt collectors are zeroing in on the millions of American struggling to make student loan payments. The numbers—one of every six borrowers in default, an average of $76 billion in defaulted loans every year—represent a potential feast for the industry, and collection agencies are lining up at the trough. The Department of Education paid collectors $1.4 billion to collect on government loans last year. “I couldn’t believe the accumulated wealth they represent—for our industry,” wrote one industry consultant after witnessing a debt protest by NYU students last year. “It was lip-smacking.”

    Read it at The New York Times