How the Government Spends $38 to Collect $1 of Student Loan Debt

It’s estimated that about 44 million Americans are living with student loan debt, adding up to more than $1 trillion owed. Around 8 million borrowers have given up on paying back more than $137 million, according to the U.S. Department of Education. The government will then pay debt collectors up to $1,700 to get borrowers who have defaulted on their loans back into good standing. Under this program it is estimated that the government pays around $38 for every $1 of student loan debt collected.