Monday, August 31, 2015

The Edu-Racket Bites: Government set to ramp up collections efforts for student loans

The Canadian release -- regret your mispent youth?

Hundreds of thousands of university and college students walking onto campuses this week with help from federal loans could find themselves targeted harder than ever to repay billions of dollars in loans and grants.

Employment and Social Development Canada, which oversees the Canada Student Loans program, has set more aggressive collection targets after feeling pressure from its political masters to stem the rising amount of student debt the government must write off each year, an amount that topped $300-million just two years ago.

The push to increase collection results – and the detailed work plan to do so – are outlined in internal government documents from last fall.

The government annually has to write off some of the $16-billion owing in student loans for a number of reasons: a debtor may file for bankruptcy, the debt itself passes a six-year legal limit on collection, or the debtor can’t be found.  (more...)

No comments:

Post a Comment