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