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The federal government has, in recent years, paid debt collectors close to $1 billion annually to help distressed borrowers climb out of default and scrounge up regular monthly payments. New government figures suggest much of that money may have been wasted.
Nearly half of defaulted student-loan borrowers who worked with debt collectors to return to good standing on their loans defaulted again within three years, according to an analysis by the Consumer Financial Protection Bureau. For their work, debt collectors receive up to $1,710 in payment from the U.S. Department of Education each time a borrower makes good on soured debt through a process known as rehabilitation. They keep those funds even if borrowers subsequently default again, contracts show. The department has earmarked more than $4.2 billion for payments to its debt collectors since the start of the 2013 fiscal year, federal spending data show.
[...] Officials at the CFPB say the government should reexamine whether the loan program, and the lucrative contracts it bestows on private firms, is working for the millions of Americans struggling to repay their taxpayer-backed student debt.
"When student loan companies know that nearly half of their highest-risk customers will quickly fail, it's time to fix the broken system that makes this possible," said Seth Frotman, the consumer bureau's top student-loan official.
-- submitted from IRC
(Score: 3, Informative) by AthanasiusKircher on Monday May 22 2017, @07:51PM (1 child)
Sometimes I really just laugh out loud at your posts. Thanks for absurdity! I love the "old man rant" dichotomy you set up here: either you're whiners or overly deferential "yes men." Nobody wins. :)
Anyhow, I can assure you that kids at the Ivies and other top schools do whine, just not as much when they're given a long assignment. They save the whining for office hours after they get a B+ on an assignment and come to cry and tell you how the prof that he's reason they won't get into law school (or whatever).
(Score: 3, Interesting) by VLM on Monday May 22 2017, @08:02PM
I could see that at an ivy especially in that classes taught by an actual professor are extremely unusual at state-U or even the private college I went to. There's some TA or grad student or adjunct software consultant teaching the class and there are no office hours for a guy who has a day job and teaches on the side. So if the instructor is excessively demanding its street justice time in the classroom with "waaaaaah" and groaning sound effects and such. Another side issue is my life experience is a lot of night school / weekend Saturday classes where some professors office hours at 2pm on Thursdays doesn't matter because like everyone else in the class I'm at work then.