The student loan market is the second-largest debt pool in the U.S.; and since it’s also the fastest-growing collections market, it may soon become the biggest pool nationwide. This means that if your collection agency isn’t involved in the student loan market, then you’re missing out on your share of a $1 trillion pot.
While there are more students graduating from college, more of those young adults are graduating with debt. The 57 percent of bachelor’s degree recipients from public four-year colleges who graduated with debt from 2011-12 borrowed an average of $25,000. That’s 22 percent – or $4,500 more compared to the average debt of the 52 percent of graduates who had education debt ten years prior.
According to data from the New York Federal Reserve Bank, the share of 25-year-old Americans with student debt was 43 percent in 2012, compared to 25 percent in 2003; in the same amount of time, the average loan balance rose 91 percent, from $10,649 to $20,326.
That’s why Ontario Systems put together its newest free whitepaper Student Loan Collection: Snapshot and Strategies. This report explains how the size and dynamic of the student loan market can be used as an opportunity for debt collectors to get involved in the marketplace, either as government contractors, as subcontractors to agencies already working with the government or as their own unique entity. Since the market is so big and its dynamic is so complex, this report also outlines ways to get involved in private student loan collections and still be profitable in the long run.
Ontario Systems LLC is a leading provider of accounts receivable and revenue cycle management solutions for the collection and healthcare industries. Wish you could handle all the complexities of the rehabilitation process? Wish you had a system that was made for the student loan world? Whether you are handling US Department of Education paper, FFELP paper, private student loans or campus based debt, Ontario Systems helps you stay on top of the latest rules, regulations and compliance mandates in the student loan vertical.