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.
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- 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 ceiling0 views