Debt collectors are gorging themselves on student loans

And until DC gets its act together, they can't be stopped

Student debt
(Image credit: (Scott Houston/Corbis))

The cost of college is skyrocketing. The labor market is atrocious. Employers demand a college degree for pretty much any job these days. Yes, at this point, it has become commonplace to note the crushing burden of college debt (the total amount of which is now something like $1.2 trillion). But there's another side to this story that hasn't gotten as much play: the implications for debt collection.

Debt delinquency exploded during the financial crisis, but has since steadily decreased for every type of debt — except that of students. Because the bankruptcy code is badly skewed when it comes to student loans, total debt collection has risen steadily. Students are now the fuel for one of America's more predatory agencies, which is saying a lot.

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Ryan Cooper

Ryan Cooper is a national correspondent at TheWeek.com. His work has appeared in the Washington Monthly, The New Republic, and the Washington Post.