Must-Know News – 5/15/2012 – Taxpayers Fund $454,000 Pay for Collector Chasing Student Loans; Department of Correction cuts could free thousands of prisoners

Joshua Mandelman made $454,000 in a single year as a student-loan debt collector — more than twice the pay of the U.S. secretary of education.

His boss, Richard Boyle, chief executive officer of Educational Credit Management Corp., received $1.1 million in 2010, including commuting expenses from his ranch in New Mexico. Five other managers each took home more than $400,000.

ECMC, a Minnesota nonprofit group, owes its success to an 18-year-old agreement with the U.S. government. The company charges fees to borrowers and earns commissions from taxpayers — totaling as much as 31 percent — when it collects on defaulted student loans. Those rich rewards, which are approved by Congress, are sparking criticism that ECMC and similar collection agencies are reaping a bonanza from former students’ pain.


  1. Italy’s GDP shed 0.8% in first quarter
  2. EU Pledges Campaign Against 1 Trillion Euros in Tax Evasion
  3. Department of Correction cuts could free thousands of prisoners (Alabama)
  4. China Kicks U.S. Private Equity Aside as Local Funds Rise
  5. Greece Raises EUR 1.3 Bln From 13-week T-Bill Sale, Yield Rises
  6. UC, CSU systems may each face additional $50 million cut under revised budget proposal (CA)
  7. California governor calls for higher taxes, 4-day state workweek to fill $16 billion gap
  8. Italian Default Protection Costs Rise After Bank Downgrades
  9. Colleges, health care face cuts in La. budget
  10. Greece heads for fresh elections after coalition talks fail
  11. Bankers call Moody’s mass downgrade attack on Italy
  12. Italy banks face more headwinds after downgrade
  13. Sacramento City Council to take first crack at police, firefighter cuts
  14. City retirement system asking for 67 million dollars (Cincinnati)
  15. Portugal’s Progress Won’t Guarantee Funding
  16. Taxpayers Fund $454,000 Pay for Collector Chasing Student Loans

……………..Headlines starting to appear on the next political fight on the hike in the debt ceiling