Student Loan Collection Agency and Guaranty Agency

"Student Loan Collection Agency and Guaranty Agency" submitted by SchoolGrantsfor Editorial Team and last updated on Sunday 8th January 2012

The Department currently contracts with several collection agencies to administer many of the collection activities of accounts. Only those accounts which fail to establish and adhere to a repayment arrangement are subject to assignment to a collection agency by the Department's Default Resolution Group. Those accounts assigned to a collection agency are assessed additional collection costs. Most students receive these loans through the Federal Family Education Loan (FFEL) program, in which the federal government provides subsidies and insurance against default losses to for- and non-profit lenders to encourage them to make student loans.

There are at least 57 guaranty agencies and millions of people paid that 18.5%. If your debt lies with a collection agency or guarantee agency, it's wise to try and work out a repayment with the original lender. There is no reason you should have to deal with a guarantee agency unless the original lender refuses to take the loan back. If they do, they no longer have to pay the collection agency so it's in their best interest to collect their own debt. If they feel you will not be a hard case to collect, they may just pull the loan back at your request. Guaranty agencies guarantee FFELP loans originated by eligible lenders against default for outstanding loan principal and accrued interest up to the date the defaulted loan claim is filed by the lender (or loan servicer operating on behalf of the lender). The defaulted loan claim is reimbursed in an amount equal to a statutorily set percentage of outstanding loan principal plus accrued interest.

All lenders and servicers who hold and service loans guaranteed by an agency are subject to annual audits of their origination and servicing operations by that guaranty agency per federal guidelines. As a result, lenders and loan servicers who hold and service loans guaranteed by multiple guaranty agencies are subject to frequent audits on nearly a constant basis.

However, to encourage the development of innovative programs to prevent defaults, enhance communication lines with borrowers and improve collection activities, guaranty agencies are permitted to enter into “voluntary Flexible agreements” (VFAs) with the ED. The insurance on FFEL loans is handled by guaranty agencies, which are public or private nonprofit entities that perform a number of functions within the FFEL program. These activities include:

Some Related Terms You Should Know

Guaranty Agency or Guarantor

The guaranty agency is an organization that administers the Federal Family Education Loan (FFEL) Program in your state. Guaranty agencies are State agencies responsible for approving student loans and insuring them against default. Guaranty agencies also oversee the student loan process and enforce federal and state rules regarding student loans. The guarantor also assists the lender in contacting delinquent borrowers in an effort to counsel the borrower on their repayment options. This agency is the best source of information on FFEL Loans. For the name, address and telephone number of the agency serving your state, you can contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

Guarantee Fee (Default Fee)

The guarantee fee is a small percentage of the loan that is paid to the guaranty agency to insure the loan against default. The insurance fee is usually one percent (1%) of the loan amount (and by law cannot exceed three percent [3%] of the loan amount). Guarantee agencies insure student loans against default. The 1% default fee (previously "guarantee fee") that is collected from each disbursement is paid to the designated guarantee agency to cover the costs of insuring the loan. (Some guarantee agencies have built up enough of a reserve that they are able to waive or reduce the default fee.) If the borrower defaults, dies or becomes totally and permanently disabled, the guarantee agency reimburses the lender for the balance remaining on the loan. Guaranty agencies earn fees for the services they provide which are listed in Table below. Revenue from fees earned for items one through four below and other compensation earned by guaranty agencies are deposited into either the Student Loan Reserve Fund (also referred to as the Federal Fund) or the Operating Fund as required by federal regulations.

Table For Guaranty Agency Fees
(1) Insurance Premium/Guarantee Fee Up to 1% of the principal amount of the loan; withheld from the proceeds of each loan disbursement or paid by the lender on behalf of the borrower
(2) Loan Processing and Origination Fee 0.40% of the principal amount of the loan; paid by the ED
(3) Account Maintenance Fee 0.10% of the principal amount of loans outstanding; paid by the ED
(4) Collection Retention Fee 23% of the amount collected on a loan on which reinsurance has been paid (18.5% of the amount collected on a defaulted loan that is purchased by a lender for rehabilitation or consolidation); withheld from gross receipts.
(5) Default Aversion Fee 1% of the outstanding principal amount of loans reported delinquent but not defaulted within 300 days thereafter. This fee is paid by transfers from the Federal Fund

Note: Traditionally, some guaranty agencies either waived or charged reduced guarantee fees. However, in 2006, Congress passed the Higher Education Reconciliation Act, which included a requirement that all FFELP guarantors collect and deposit into the Student Loan Reserve Fund 1% of the principal amount disbursed of all Stafford and PLUS loans originated after July 1, 2006.

Guaranteed Student Loan (GSL)

Now called the Stafford Loan, a guaranteed loan is insured against default. In the case of guaranteed student loans, the federal government agrees to repay the loans in case of default. Each loan is charged a guarantee fee to cover the costs of defaulted loans.

Nationwide Collection Agencies

Progressive Financial Services
P. O. Box 24098 Tempe, AZ 85285
Tel: (800) 745-2345,
Collecto Inc., d.b.a. EOS CCA,
700 Longwater Drive, 2nd Floor, US-Norwell, MA 02061,
Phone: +1 800 886 9177,
Fax: +1 781 681 4340,
Allied Interstate, Inc.
P. O. Box 26190 Minneapolis, MN 55426
Tel: (800) 715-0395,
Pioneer Credit Recovery, Inc.
Arcade Office: 26 Edward St., Arcade, NY 14009, P.O. Box 100, Arcade, NY 14009,
Tel: (585) 492-1234, (800) 836-2442,
Fax: (877) 324-0409,
Perry Office: 20 Parker Ln., Perry, NY 14530,
Tel: (585) 237-7000, (800) 515-3102
Moorestown Office: 308 W Rt 38, Moorestown, NJ 08057,
Tel: (866) 372-6840
NCO Financial Systems, Inc,
P.O. Box 4929 Trenton, NJ
Tel: 08650-4929 (888) 475-6741
The CBE Group, Inc.
P.O. Box 930 Waterloo IA 50704-0930
Tel: (800) 410-8089,
Performant Financial Corporation,
333 North Canyons Parkway, Suite 100, Livermore, CA 94551,
Toll free: 866 256 0057,
Telephone: 925 960 4800,
Fax: 925 960 4880,
Branch offices:
Grants Pass, Oregon: 541 955 7800,
Lathrop, California: 209 858 3500,
San Angelo, Texas: 325 224 6001,
Carlisle, Pennsylvania: 717-961-5107,
Premiere Credit of North America, LLC,
PO Box 19309, Indianapolis, IN 46219,
Tel: 888-403-1637,
P. O. Box: 960 Phoenix, Arizona 85001
Tel: (877) 719-7015,
GC Services,
P. O. Box 27323 Knoxville, TN 37927
Tel: (866) 846-9964,
Account Control Technology, Inc.,
5531 Business Park South, Bakersfield, CA 93309, P.O. Box 8012, Canoga Park, CA 91309,
Toll-free: (800) 394-4228
Fax: (877) 403-7772,
West Asset Management, Inc.
2253 Northwest Pkwy SE Marietta, GA 30067,
Tel: (770) 618-1290,
West Corporation Headquarters:
11808 Miracle Hills Dr., Omaha, NE 68154,
Tel: 800/232.0900, 800/841.9000,
Coast Professional, Inc.
P.O. Box 2899 West Monroe, LA 71294
Tel: (888) 869-1170,
National Recoveries
P.O. Box 48367 Minneapolis, MN 55448
Tel: (877) 221-9729,
Enterprise Recovery Systems, Inc.,
2400 South Wolf Road, Suite 200, Westchester, IL 60154, P.O. Box 5288 Oak Brook, IL 60522,
Department of Education Loan Borrowers:
Phone: (888) 377-5000,
Fax: (630) 574-0199,
Windham Professionals, Inc.
P.O. Box 400 East Aurora, NY
Main: 380 Main Street, Salem, NH 03079,
Educational Collections Division:
Toll-free Telephone (for Borrowers): (800) 208-5076,
Fax: (603) 890-3554,
Boston, Massachusetts: 1-800-969-0059 (x) 2152,
East Aurora, New York: 1-866-430-1548 (x) 5579,
Hendersonville, Tennessee: 1-888-241-8262 (x) 7011,
Las Vegas, Nevada: 1-888-318-0017 (x) 7202,
Salem, New Hampshire: 1-800-969-0059 (x) 2152,
Email: ,
Collection Technology, Inc.
P.O. Box 2036 Monterey Park, CA 91754
Tel: (800) 620-4284,
Van Ru Credit Corporation
P. O. Box 1027 Skokie, IL 60076-8027
Tel: (888) 337-8331,
Delta Management Associates, Inc.,
100 Everett Avenue, Suite 6, Chelsea MA 02150,
P.O. Box 9192 Chelsea, MA 02150-9192,
Immediate Credit Recovery (ICR), Inc.,
169 Myers Corners Rd., Suite 110, Wappingers Falls, NY 12590,
Phone: (800) 234-ICR1 (4271)
Fax: (845) 297-2226
FMS Investment Corp.,
Headquarter: 1000 E Woodfield Rd, Ste 102, Schaumburg, IL 60173,
Illinois Branch: 4021 Morsay Drive, Rockford, IL 61107,
Toll free: 800-605-9817 ext 6000,
P.O. Box 190 Fairport, NY 14450-0190
Tel: (866) 804-1700,
Financial Asset Management Systems, INC. (FAMS),
Corporate Offices: 2859 Paces Ferry Road, Suite 510, Atlanta, GA 30339, P.O. Box 451109 Atlanta, GA 31145-9109, T: 770-438-5580,
Georgia Center: 1967 Lakeside Parkway, Suite 402, Tucker, GA 30084, T: 678-937-5100, 888-668-6925,
Missouri Center: 70 Corporate Hills Drive, Suite 103, St. Charles, MO 63301, T: 636-925-5300, 800-530-2609
Oregon Center: 20450 NW Amberwood Drive, Suite 122, Beaverton, OR 97006, T: 503-372-2620, 866-743-9889,
Access Group, Inc.,
5500 Brandywine Parkway, Wilmington, DE 19803, P.O. Box 7430, Wilmington, DE 19803-0410,
Payment Operations: P.O. Box 822349, Philadelphia, PA 19182-2349,
Credit Reporting Disputes: PO Box 7808, Wilmington, DE 19803-0808,
Toll-Free: 800-282-1550,
Fax: 302-477-4080,
ACS, a Xerox company,
ACS Corporate Headquarters: 2828 North Haskell, Dallas, TX 75204,
T: 214.841.6111,
FFEL Borrower Services and Campus Products and Services:
T: 800.835.4611, 800.826.4470, 877-294-9252 (ask Scott Eddleman),
ALL Student Loan
Student and Borrower Support Services:
Federal Stafford, PLUS, and Grad PLUS Loans
T: (888) 271-9721, E:
Financial Aid Officer Support Services:
T: (888) 330-9955, E:
American Education Services (AES), of PHEAA (Pennsylvania Higher Education Assistance Agency at Pennsylvania & West Virginia):
Guaranty Services/ Loan Origination
1200 N 7th St, Harrisburg PA 17102-1444, P.O. Box 2251, 2461, 8139 & 8147, Harrisburg, PA 17105-2251,
Refunds: AES, School Refunds/Loan Origination, PO Box 64849, Baltimore, MD 21264-4849,
Tel: 1-800-443-0646, 1-800-233-0557,
American Student Assistance (ASA),
100 Cambridge Street, Suite 1600, Boston, MA 02114,
Borrower Counseling: T: 866.493.5563, 617.728.4200 , ext. 5009, E: ,
School Client: T: 800.999.9080, option 4, E: ,
Repayment Assistance: T: 800.343.8883, 617.728.4200 , ext. 5000 E: ,
Default Payment Solutions: T: 800.343.2120, 617.728.4200 , ext. 5002 E: ,

Nationwide Student Loan Guaranty Agencies:

Student Loan Guaranty Agency State(s) Designated Guarantor, USA Phone Website
American Education Services/PHEAA Delaware (DE), Pennsylvania (PA), West Virginia (WV) 1-800-443-0646, 1-800-233-0557, 800-692-7392
American Student Assistance District of Columbia (DC), Massachusetts (MA) 800-999-9080
California Student Aid Commission (CSAC) /EdFund California (CA) 916-526-7900
College Assist Colorado (CO) 303-305-3000
Connecticut Student Loan Foundation Connecticut (CT) 800-237-9721
Education Assistance Corporation South Dakota (SD) 605-225-6423
Educational Credit Management Corporation Virginia (VA), Oregon (OR) 888-775-3262
Finance Authority of Maine Maine (ME) 800-228-3734
Florida Department of Education, Office of Student Financial Assistance (OSFA) Florida (FL) 850-488-4095
Georgia Student Finance Commission Georgia (GA) 800-505-GSFC
Great Lakes Higher Education Guaranty Corporation Ohio (OH), Minnesota (MN), Wisconsin (WI) 608-246-1800
Higher Education Student Assistance Authority New Jersey (NJ) 800-792-8670
Illinois Student Assistance Commission Illinois (IL) 800-899-4722
Iowa College Student Aid Commission Iowa (IA) 800-383-4222
Kentucky Higher Education Assistance Authority Alabama (AL), Kentucky (KY) 800-928-8926
Louisiana Office of Student Financial Assistance Louisiana (LA) 800-259-5626
Michigan Higher Education Assistance Authority Michigan (MI) 800-642-5626
Missouri Department of Higher Education Missouri (MO) 800-473-6757
Montana Guaranteed Student Loan Program Minnesota (MN) 800-537-7508
National Student Loan Program Nebraska (NE) 800-735-8778
New Hampshire Higher Education Assistance Foundation New Hampshire (NH) 800-525-2577
New Mexico Student Loan Guarantee Corporation New Mexico (NM) 800-279-3070
New York State Higher Education Services Corporation New York (NY) 800-642-6234
North Carolina State Education Assistance Authority North Carolina (NC) 919-549-8614
Northwest Education Loan Association Idaho (ID), Washington (WA) 800-562-3001
Oklahoma Guaranteed Student Loan Program
(Now known as Oklahoma College Assistance Program)
Oklahoma (OK) 800-247-0420
Rhode Island Higher Education Assistance Authority Rhode Island (RI) 800-922-9855
South Carolina Student Loan Corporation South Carolina (SC) (800) 347-2752, (803) 798-0916
Student Loan Guarantee Foundation of Arkansas Arkansas (AR) 800-622-3446
Student Loans of North Dakota North Dakota (ND) 800-472-2166
Tennessee Student Assistance Corporation Tennessee (TN) 800-257-6526
Texas Guaranteed Student Loan Corporation Texas (TX) 800-252-9743
United Student Aid Funds Arizona (AZ), Hawaii (HI), Indiana (IN), Kansas (KS), Maryland (MD), Mississippi (MS), Nevada (NV), Wyoming (WY) 866-329-7673
Utah Higher Education Assistance Authority Utah (UT) 800-418-8757
Vermont Student Assistance Corporation Vermont (VT) 800-642-3177

Contact ED For Collection Agencies

Please call at 1-800-621-3115 for questions regarding your defaulted student loan account. If you are unsure which agency is servicing your defaulted student loan(s), you may call 1-800-4-FED-AID (1-800-433-3243) for an address and telephone number of the agency which holds your defaulted loan(s). You may also reach us by e-mail at for questions regarding your defaulted loans. You may contact the collection agency directly if your defaulted loan has been assigned to one. If your loan is a William D. Ford Federal Direct Student Loan, please contact the Direct Loan Servicing Center. This agency is this best source of information about your loan. Contact the Direct Loan Servicing Center: ED Collections Guide to Defaulted Student Loans:

Contact NSLDS Guaranty Agencies

National Student Loan Data System (NSLDS) for Students is database for federal student financial aid where you can find out about the aid you’ve received. If you’ve only just applied for aid, you won’t find any information on NSLDS yet. NSLDS receives data from schools, guaranty agencies and U.S. Department of Education programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data. The NSLDS Web site is generally available 24 hours a day, seven days a week. By using your PIN, you can get information on federal loan and Pell Grant amounts, outstanding balances, the status of your loans and disbursements made. You can access NSLDS at


National Council of Higher Education Loan Programs (NCHELP), Inc. represents a nationwide network of guaranty agencies, secondary markets, lenders, loan servicers, collection agencies, schools and other organizations involved in the administration and servicing of federal and alternative student loans. NCHELP members promote student access and choice for postsecondary education and training. Another important NCHELP initiative is the Meteor Project. Meteor provides financial aid professionals with the ability to access timely, student-specific financial aid information from multiple sources. Meteor is a shared effort of leading FFELP business partners who have chosen to contribute financial and/or human resources to the project. Meteor™ production support is made possible through partnership with National Student Clearinghouse: Degree verification & enrollment verification. For NCHELP listed collection agencies, visit: For more details you may visit: Role and Responsibilities of the Guaranty Agencies

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