Education Department Agrees to Phase Out Private Debt Collectors in Federal Student Loans


May 27, 2018 – WASHINGTON, D.C. – The Department of Education has filed a motion announcing a plan to phase out the use of private debt collectors contracted to pursue defaulted student loan borrowers, and instead rely on current loan servicers. Kamala D. HarrisPrivate debt collectors aggressively pursue defaulted student loan borrowers while profiting from taxpayer dollars. This announcement follows a January 23 letter sent to Secretary Betsy DeVos by U.S. Senators Kamala D. Harris (D-CA), Elizabeth Warren (D-MA), Patty Murray (D-WA), Kirsten Gillibrand (D-NY), Catherine Cortez Masto (D-NV), Ron Wyden (D-OR), Mazie Hirono (D-HI), Patrick Leahy (D-VT), Sherrod Brown (D-OH), Richard Blumenthal (D-CT), Dick Durbin (D-IL), and Dianne Feinstein (D-CA) asking them to reconsider the use of private debt collectors.