Millions of student-loan borrowers risk facing debt collectors who were penalized for 'misleading' behavior
A partnership with the Education and Treasury Departments brings back private companies to collect on defaulted student loans. SAUL LOEB/AFP via Getty Images Private student-loan collectors penalized for claims of misleading behavior could work with borrowers again. It's part of Trump's transfer of defaulted student loans from the Education Department to the Treasury. It could expose borrowers to high collection fees and repayment challenges. Private companies penalized for their student-loan collection tactics may be making a comeback. As President Donald Trump transfers federal student loans from the Department of Education to the Treasury Department, defaulted borrowers will be routed through the Treasury's "Cross-Servicing program," which uses private contractors to collect federal debts. Two agencies in that system, Pioneer Credit Recovery and Transworld Systems, were previously sued or fined by federal watchdogs for "misleading" or "abusive...
