I stumbled across two interesting things about Federal Student Loan Guaranty Agency Recovery Rates. The first is the last public report issued was back on March of 2018. Department of Education is dragging their feet on their regular reporting.
Guaranty agencies were private lenders who made student loans under the Federal Family Education Loan (FFEL) Program. Those loans were made up to July 1, 2010.
While this isn’t about current loans, the last reported collection activity is telling.
For example, out of the total inventory of loans, 16.12% is in active collections. That number does not appear to include defaults. Only accounts active in collections.
The performance of each guaranty agency varies greatly. The agency with the highest FFEL accounts in active collections is with the Colorado guaranty agency. Their program is known as College Assist.
Of the total balance of their portfolio, here are the average percentages in each category.
Voluntary Payments in Collection: 0.46%
Administrative Wage Garnishment: 0.93%
Treasury Offsets: 0.53%
Rehabilitation: 13.06%
Direction Consolidation: 5.84%
The guaranty agencies with the highest percentage in each category were:
Voluntary Payments in Collection: 1.56% (New Jersey)
Administrative Wage Garnishment: 2.55% (Texas)
Treasury Offsets: 1.83% (New Jersey)
Rehabilitation: 13.06% (Colorado)
Direct Consolidation: 7.72% (Illinois)
Total in Active Collection: 20.82% (Colorado)
The guaranty agencies with the lowest percentage in each category were:
Voluntary Payments in Collection: 0.34% (New Mexico)
Administrative Wage Garnishment: 0.80% (Massachusettes (ASA))
Treasury Offsets: 0.53% (Colorado)
Rehabilitation: 0.63% (Florida)
Direct Consolidation: 0.75% (Florida)
Total in Active Collection: 4.16% (Florida) – Source
Data was obtained here.
