ED Collection Contract Leaders Break from the Pack in April

The overall leaders in the unrestricted contract competition on the Department of Education’s student loan collection contract put a little more distance between themselves and their rivals in April. Meanwhile on the small business contract, a middle-of-the-pack agency mounted a challenge to leaders by winning the month.

In its latest monthly release of performance statistics, ED’s Federal Student Aid division reported that Arcade, N.Y.-based Pioneer Credit Recovery was the largest money collector and total points winner among large collectors, bringing in $20.6 million in April. ED uses a point system to rank their 17 collection agencies based on total dollars collected, accounts serviced and administrative resolutions.

Horsham, Pa.-based NCO Group took second place among the large businesses with $16.7 million collected. Pioneer and NCO are currently the top two agencies in the competition over the length of the contract, with $498.2 million and $372.5 million collected respectively over the course of the contract’s 38 months.

On the small business set aside contract, Indianapolis-based Premiere Credit led the competition in overall points. In April, Premiere collected $4.7 million for ED. Fairport, N.Y.-based Continental Service Group (Conserve) took second place, but collected more money at $5 million. But Premiere’s recovery rate was higher and also had a higher rate of accounts serviced and administrative resolutions, pushing it over the top.

Conserve is the overall leader among small businesses with $117.5 million collected over the length of the contract. Account Control Technology (ACT), based in Canoga Park, Calif., has the second-highest total among small businesses with $96.3 million collected.

The 17 collection agencies currently working on the student loan collection contract have collected $3.66 billion for ED in 38 months.

A new contract for student loan collectors will be awarded in September of this year, with current contractors jockeying for extensions over the current contract’s closing months (“ED to Extend Current Collection Contract for Only a Few,” April 21).