Americans Are Paying $38 to Collect $1 of Student Debt ! The Sick Business of Debt Collecting ---------( Follow 2 B Followed)

The U.S government has paid debt collectors around $1 billion annually to helps distressed borrowers getting out of default and still paying a monthly payment. The sad truth is that the government has been wasting tax payers money.

Students that have borrowed and defaulted, thus having them work with debt collectors to get their credit in good standing with loans would default again within three years. Debt collectors can receive up to $1,710 in payments from the U.S. Department of Education (DOE) each time a student makes good on soured debt through a payment process. Debt collectors keep those funds even if the borrower defaults again. The DOE has payed more than $4.2 billion to debt collectors since the start of the 2013 fiscal year. The government pays debt collectors nearly 40 times what they bring in.

Even when student don't default on their loans, debt collection efforts still continue in collecting . Close to 80 percent of students who have defaulted are paying $5 monthly payments. That means the DOEis paying its debt collectors up to $1,710 per defaulter o collect around $45, regardless of whether the student continues to make their payments.

The student loan business is killing Americans dreams across the country. This business is hurting America financially and morally. With the hopes of getting a better education in order to find a good job to pay those debts is a manner to keep plenty suppressed! This needs to change!