Sunday, October 18, 2015

Margaret Spellings: In the Student-Loan Collection Business

Student loans maintain the highest default rate (11.8 percent) of all consumer debt, well above the rates for autos (3.4 percent), home mortgages (4.3), and credit cards (9.4).

Collecting on overdue student loans has become a growth industry. It's nasty work, but someone has to do it.

Helping those who do it to do it with gusto: Margaret Spellings, the anointed candidate chosen by John Fennebresque et al. to take over the University of North Carolina system.

CENNATE Corp. specializes in collecting student loans. Growth industry? Why, yes. CENNATE Corp. recently expanded its workplace to 74,000 feet and doubled its workforce in suburban Illinois.

So those of you inclined to pooh-pooh her higher education credentials can just cut it out. She signed on in March to help extract blood from those overripe college student tomatoes.

[Hattip to Greg Flynn who alerted us to the CENNATE connection]


Anonymous said...

I expect you would rather teach young people that they don't have to live up to the financial commitments they make? I am totally in favor of taxpayer funded college tuition for students who achieve a satisfactory level of academic performance - BUT, unless and until we change the rules, let's follow the rules we currently have in place.

Democratus Rex said...

The rules currently in place do not allow for student loans to be defaulted, even in bankruptcy. The ONLY consumer loan that has that requirement.

Webster said...

Rex, it looks like you don't know what is meant by "default". You are confusing defaulting on a loan with bankruptcy. When a loan is not repaid in accordance with its terms, it is in default.

WebbRowan said...

We really cannot expect students to have a whole lot of finances when they graduate. And to start in the working world in debt is not exactly the biggest boost to their confidence either!