Government Pays Debt Collectors $40 For Each $1 They Retrieve

Government Pays Debt Collectors $40 For Each $1 They Retrieve:
"The U.S. government pays professional debt collecting agencies, on average, nearly 40 times the value of what they collect, according to joint research released Tuesday from the Consumer Financial Protections Bureau and government filings.
The federal government is annually dolling out an average of $1 billion to debt collectors to retrieve borrowers delinquent debt, Bloomberg reports.
Of course, it is American taxpayers, not the government, that are shouldering this hefty sum.
Currently, the government is particularly interested in retrieving outstanding student loan debt.
Student loans are one of the most common and largest forms of borrowing in recent years, as families still hold to the belief that a college education is the necessary for achieving the “American Dream.”
The total value of outstanding student loans eclipses $1.3 trillion in 2017.
Nearly 8 million Americans holding some $137 billion in federal student loans are at least 360 days delinquent on their payments.
That figure is roughly equivalent to the number of people who lost their homes after the housing market collapse of 2007..."