Government Asks Student Loan Borrowers in Default to Pony Up
Americans who have failed to repay their federal student loans may soon find themselves facing litigation, The National Law Journal reports (“Government Cracking Down on Unpaid Student Loans,” Feb. 13, 2009).
The U.S. Department of Justice has contracted with
Teller, Levit & Silvertrust, P.C., a collections law firm that specializes in creditors’ rights and commercial litigation, to recover defaulted college loans — some taken out almost 30 years ago. The collections firm is expected to file as many as 20 new cases a week in early 2009 against borrowers who are delinquent on their federal student loans.
“The government pursues recovery of money it’s owed,” said Randall Samborn, a spokesman for the U.S. Attorney’s Office for the Northern District of Illinois, the federal court in which the cases were filed. “Unfortunately, student loan defaults are a voluminous source of litigation.”
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