The Detroit Free Press has an interesting article today about the methods the federal government uses to collect student loans in certain jurisdictions including the Eastern District of Michigan. In jurisdictions where the federal government hires private lawyers on a contingency basis (based on money actually collected) to file student debt default lawsuits there are far more lawsuits filed than in jurisdictions where it does not. The article notes that the government collects about 80 cents on every dollar owed when the cases go into the court system. The fact that student loan debt cannot be discharged in bankruptcy likely contributes to this number.
s/ Kurt Koehler
308 1/2 S. State Street Suite 36
Ann Arbor, Michigan 48198