$33,502,777,441 – Yes That’s TRILLION in Student Loans.

Mr. Kay here,

The U.S. Department of Education held an interesting meeting today (October 28,2011).

Why was it interesting?

This meeting had all the “big wig” collection agencies all in one place.  I told this same story on why this meeting was so important to a friend of mine.

His response…. “someone should of dropped a bomb.”

Now… in NO WAY – SHAPE OR FORM I am saying to do this or I wish this happened. But… this meeting is a very very interesting scary meeting.

In this meeting the U.S. Department of Education said they have  $33,502,777,441 in the defaulted student loans aka “their portfolio”.

That’s 33 TRILLION!!!!! Do you know how much money that is?  If you don’t know – watch this video, it will blow your mind away.

Can you believe it? Well I hope you can.  And that number is just the DEFAULTED student loans.

Now… let’s do the math on this.

If you take $33,502,777,441 (total default loans)  divide by 3,000,000 (borrowers – what US Dept of Ed Released) = $11,167.59 for average borrowers loan.

Now… this doesn’t sound right from my survey I’ve completed.

TAKE SURVEY HERE

I’ve had over 6,342 borrowers who took the survey since last year and 43% of my email subscribers said they had loans over $30,000!

We see a disconnect in the number released by US Department of Education and what I’ve found. But that’s the government they are ALWAYS right.

Now…

Why is this important to know and why was this meeting on October 28, 2011 important?

Simple…

U.S. Department of Education NEVER collects on the student loans by themselves.  U.S. Department of Education collects money on defaulted student loans using 3rd party collection agencies.  These collection agencies are contracted and when they get the “ED contract” they are basically given super human powers (Sorta).

These power include.

1. Take your income tax money
2. Garnish your wages without court orders
3. No statue of limitations (meaning you will owe it forever)
4. Slapping Judgement
5. Taking your professional licenses (real estate people, doctors, chiropractors, attorneys etc)
6. Even your kids won’t be able to go college (really? Click here to find out)

Ok ok ok… Mr. Kay I get that the collection agencies went to this secret meeting. What does this super power have to do with defaulted student loans?

We’re now going to get into a deep rabbit hole…

This hole is dark, ugly, and NEVER talked about out side our industry.  You most likely would have never even know about this meeting if it wasn’t for me.

This meeting in Washington D.C. was to discuss which collection agencies “procedures and protocalls”.  From the outside in – it just looks and sounds like giberish BUT it was a strange meeting.

It was strange because we are now going to get the “next round of contract” from U.S. Department of Education.  Meaning… who will get hired and get guarantee income AND the super powers!

Also…

In the meeting U.S. Department of Education  said… the current “recovery rate” (how they take your money), is at 11.5%.  Mr. ED wants to increase that rate to 13.86% in 2012 and grow it to just about 14% in 2015.

On top of that…

If you are not aware – the commission pool (aka from collecting) in 2012 is $500 million and is projected to reach $700 million in 2015.

THAT IS THE #1 REASON WHY THE COLLECTION AGENCIES WANT THE “ED CONTRACT”

The current contract is called the 2009 contract but put into play in 2008 (that’s your government for you).  This contract will go bye-bye in 2012.

It’s odd that ED will come out and make these statements when collection agencies right now can get an “extension” (based on performance of course). Collection agency with the “ED contract” gets a performance report. This performance report is kinda like a report card.  It shows how much they collected, how they collected it, how many accounts was worked, how many garnishments, how many complaints (this is KEY – leave a comment if you want to know why) and etc.

This report card will then tell the story if the “ED contract” will stay with this collection agency or move to that collection agency.

Starting THIS QUARTER. The fourth quarter of 2011… these student loan collection agencies can get a little bonus point on their report cards… if they follow this special rule.

This special rules will now GIVE other collection agencies the same super powers to collect on student loans.

How is this possible when you MUST have the “ED contract” to “officially collect on these loans”.  It’s simple… these other collection agencies are now allowed to be “sub-contractors”.

ED -> subcontracts to EVIL COLLECTION COMPANY ->sub contracts to mini-me evil collection company

This meeting had more than the 22 companies on the “ED contract” with the few extras new kids.

Now I’m asking myself…

Is ED looking to now expand and collect on this money? Our country needs a cash infusion and are they now going to come to the student loan borrowers.

I think they are… they have $33,502,777,441 in student loans.  This meeting is the start…

Please leave me a comment, rave review, questions, and etc. I hope to hear from you soon.

Sincerely,

Mr. Kay Production Manager

Rogue Student Loan Collector

The Confessions of a Student Loan Collectors – Visit: www.FreeStudentLoanStuff.com to get the most shocking truth about defaulted student loans. .

Why should you listen to me?

Why am I releasing this information?

As the economy becomes worst, debt collectors are becoming very aggressive.  If private collection agencies are able to pull this kind of student, imagine what the federal government is doing!  This video is very disturbing.

Get the Confessions of a Rogue Student Loan Collector
and Learn what really goes on behind closed doors.
http://www.FreeStudentLoanStuff.com

Mr. Kay
Blog: http://www.studentloanfundamentals.com