Testimonials

Testimonial

“Kenneth is an innovative entrepreneur who has a passion for helping individuals navigate through the complex web of private and Federal student loans. His investment in FMI and commitment to his student clients’ success is testament to his success.”


Angel Beltran Integration Project Manager, Talmer Bank & Trust

Monday, September 3, 2012

America's Average Student Graduates With A Debt Load Between $23,000 and $27,000

America's average student graduates with a debt load between $23,000 and $27,000. In 2010, 62 percent of jobs required a degree beyond high school, but that's expected to increase to 75 percent by 2020. What does this possibly mean for collections agencies?  MORE DEFAULTED CONTRACTS!!! Both government and guaranty agencies often hire private collection agencies to collect defaulted student loans.  

When students complete college most if not all colleges request that students go through an exit interview.  It has been our experience with "some" clients that they were not educated on preventative default measures, or educated on the consequences if your loan goes into default, or about the variety of programs available for students and non students if default does become a reality.  Many students after graduation do actually lose track of their student loans..due to relocation, marriage, focusing on the job market, unemployment issues. 

Private collection agencies are delegated the responsibility for determining the size of a reasonable and affordable payment plan.  In addition, these collection agencies help locate borrowers, determine if students are eligible for possible administrative wage garnishments and tax refund intercepts.  The complexity of student loans often leads to borrower confusion when a collection agency makes contact with the borrower to inform them that there student loans are in default.  Which leads to frustration, anger, embarrassment and eventually some borrowers filing complaints.

According to the Department’s 2009 Private Collection Agency Manual, each collection agency is required to have at least two people designated to receive and manage complaints.  If you are having trouble dealing with a collection agency, ask for the designated “complaint” person.  You should let the Department of Education know if their contractors are not complying with these requirements. 

The Department of Education deals with hundreds of thousands of borrower complaints about collection agencies and not all complaints will be handled expeditiously. And with all do respect not all complaints are legitimate.   

If you are in need of student loan default assistance please contact Financial Management Institute, Inc. at www.teamfmi.com.  We offer our clients a 100 percent money back guarantee and a FREE online platform were students and non-students can take advantage of financial education lesson plans, our student loan resource center, downloadable federal forms, brochures, guides and much more.