Alexander, Miller & Associates: PSAs play critical role in Houston’s Department of Education (HCDE)

  HOUSTON, TX - 10/31/2016 (PRESS RELEASE JET)

Recently there have been many negative news reports about private collection agencies (PSAs) who recover student loan debt that is in default on behalf of the Department of Education. Despite the fact that there has been no proof of purposeful wrongdoing, the amount of negative press PSA’s receive remains steady. That being the case, Alexander Miller & Associates believes there is a need for recognition of the critical role PSA’s play on behalf of all parties involved including students, borrowers and the families affected. This important work extends beyond individual debt holder, this is work that affects all taxpayers and national economy.

Debt collection agencies are very effective at what they do and have millions of borrowers that they communicate with. These highly trained experts work to locate and then help borrowers in default find available programs that guide them in lifting their heavy burden. The fact is that outsourcing debt collection is a very cost-effective solution for the tay-payer because debt collection agencies only get paid when they locate a borrower and resolve their default. Having thousands of full time government employees performing this function not be a cost effective solution in this case.  Overall taxpayers and borrowers both benefit from companies like Alexander Miller & Associates in the following ways:

• Over 2.6 million borrowers In the last decade have been helped by PCAs to rehabilitate their student loans that defaulted and nearly 1.1 million people seek loan consolidation.

• Helped over 90,000 borrowers resolve their defaulted loans in the fiscal year of 2014 utilizing one of the several loan discharge programs that are available.

• Creating Millions of telephone contacts and tens of millions of successful financial transactions that assisted close to 2.7 million individual borrowers in the current fiscal year

• Borrower complaints are a small percentage of overall borrower contacts, showing a successful record and does serve as a model for other customer service-oriented businesses.

• Nearly $110.3 billion was recovered and later returned to the U.S. Treasury over the last 10 years

• In the fiscal year of 2013, the federal government kept 90% of every $1.00 recovered by collection agencies, showing the smart value of outsourcing collections.

• Companies like Alexander Miller & Associates employ over 10,000 American workers across the country, with compensation rates that are standardized guidelines by U.S. Department of Labor. The collection agencies and their employees support the national economy and their local communities through taxes and local spending.