Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Defaulted Student Loans: Guaranty Agencies' Collection Practices and Procedures: Hrd-86-114br

Defaulted Student Loans: Guaranty Agencies' Collection Practices and Procedures: Hrd-86-114br

U. S. Government Accountability Office (G

Paperback

General Political Science

ISBN10: 1289116474
ISBN13: 9781289116477
Publisher: Bibliogov
Published: Jun 27 2013
Pages: 76
Weight: 0.34
Height: 0.16 Width: 7.44 Depth: 9.69
Language: English
Pursuant to a congressional request, GAO reviewed the methods used by the Department of Education and state or nonprofit loan guaranty agencies to collect defaulted student loans.

GAO found that: (1) guaranty agencies provide preclaims assistance to lenders, process lenders' claims, collect loans, prepare forms for Education, and perform litigation of defaulters; (2) guaranty agencies' standard procedures for collecting defaulted student loans were less stringent than Education regulations; (3) agencies differed in how they credited defaulter payments to an individual's outstanding balance; (4) 86 percent of the agencies used an average of 5 private collection contractors; (5) 79 percent of the agencies had difficulty enforcing legal judgments against defaulters; (6) the use of administrative offsets or wage garnishment procedures was limited by state law; and (7) the most successful collection techniques were reporting defaulters to credit bureaus, using private collection contractors, and contacting borrowers by telephone.

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