Student Loan Collection Agency to Add 300 Jobs
At least somebody’s profiting from the economic downturn.
IndyStar.com reports today that Premiere Credit, which has a lucrative contract with the Department of Education to collect on delinquent student loans, is expected to double in size in the next few months, in sharp contrast to other debt collection agencies, which have been struggling as the poor economy makes it more difficult than ever to collect on bad debts. The reason Premiere is doing so well?:
…[G]overnment-backed student loans are much easier to settle than unsecured loans, such as those for credit cards. Not only are there myriad ways to repay student loans, but debt collectors also have the law on their side.
There’s no statute of limitations on collection efforts. The loans, more often than not, can’t be discharged in a bankruptcy. Collections agents can garnish wages, tax refunds and Social Security payments, and they can access a federal database of new hires that makes it easier to find employed people who can pay.
“Student loan collection agencies have tools at their disposal that are the envy of collectors serving other markets,” Legrady said.
Maybe those 300 jobs will be filled by some of those unemployed new graduates out there who won’t be able to pay their loans any time soon. They can call and harass themselves! They can garnish their own wages! It will be a paragon of efficiency! Who says the student loan industry is rotten?