Feds Announce New Debt Collection Contracts

The U.S. Department of Education last week announced the seven companies it awarded new contracts for the collection of debt from federal financial aid. The seven companies, listed below, were selected from 48 bids, according to the publication insideARM.

Last year the department said five debt-collection companies had misrepresented borrowers in an attempt to get loans out of default. None of those five companies were awarded new contracts. The seven that did are Financial Management Systems Investment Corp., GC Services Limited Partnership, Premiere Credit of North America, the CBE Group, Transworld Systems, Value Recovery Holding and Windham Professionals.