Obama Administration Explores Ways To Collect Student Loan Payments Without Middlemen

Source: Shahien Nasiripour, Ryan Grim, Huffington Post, November 13, 2014

The U.S. Treasury Department soon will take some student borrowers’ accounts away from private debt collectors and give them to federal workers, an ambitious new pilot project that may result in the government cutting out the student loan middlemen who have gotten rich targeting distressed borrowers. The federal employees will be charged with finding ways to help troubled borrowers make good on their delinquent debts, according to borrower advocates and Obama administration officials who have been briefed on the project. The project may start early next year.