Bohemia, NY (PRWEB) September 24, 2012
On September 24th, collection agency Rapid Recovery Solution reacts to an article published for The New York Times concerning the amount of people defaulting on their student loans and the collection agencies that take over.
According to The New York Times, 5.9 million people in the United States are 12 months or more behind in making payments to their government-backed student loans. The article expresses that, “In all, nearly one in every six borrowers with a loan balance is in default. The amount of defaulted loans — $76 billion — is greater than the yearly tuition bill for all students at public two- and four-year colleges and universities, according to a survey of state education officials.” In addition, the Education Department paid $1.4 to debt collection agencies in an attempt to recover money on defaulted loans. “Unlike private lenders, the federal government has extraordinary tools for collection that it has extended to the collection firms,” The New York Times reports. Debtors have had their paychecks or Social Security payments garnished and have had their tax refunds seized according to the article.
According to John Monderine, CEO for the collection agency Rapid Recovery Solution, “I think if the students taking these loans out can't find jobs with a starting salary high enough to repay the loans, maybe the government should look at how much schools are charging.”
The New York Times, whose article refers to Jason Brock, a 29 year old graduate who owes $100,000 in student loans, reports “The average default amount was $17,005 in the 2011 fiscal year. Borrowers who attended profit-making colleges — about 11 percent of all students — account for nearly half of defaults, while dropouts were four times as likely as graduates to default. A loan is declared in default by the Department of Education when it is delinquent for 360 days.” In addition, if a borrower decides to default they risk increasing how much they owe, destroying their credit, and could receive penalties up to 25 percent of the balance. The article explains that collection agencies often take over when borrowers cannot be located.
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of wonderful Long Island. Rapid Recovery Collection Company, is committed to collecting your funds. RRS firmly believes that debtors have the ability to pay if they are motivated correctly. Rapid DOES NOT alienate the debtors; they strive to team up with them and offer a variety of ways to resolve not only your debt but also all their debts.