Over the past several months, student loan borrowers have been reporting receiving a notification letter and/or email from the Department of Education stating, "The U.S. Department of Education recently recalled your defaulted student loan account." Here's what you need to know about when the Department of Education recalls your defaulted student loan debt. Where Your Student Loans Go In DefaultThe process of student loan default is a long one. Specifically, the Department of Education turns your student loans over to a debt collector (there's currently about 22 companies who collect student loan debt for the Department of Education). On average, Department of Education debt collectors have just a 3.4% recovery rate on defaulted student loans.

Source: Forbes September 11, 2018 12:22 UTC