Collection agencies love student loans due to their high collectibility. These loans have higher balances, are thoroughly documented, and are more likely to be repaid as individuals’ financial capability grows over time.
Kinum collection agency can not only recover loans directly from students, but also support university accounting teams by instructing students to fill out applications for financial aid options like FAFSA, Direct subsidized/unsubsidized Loans, Pell Grants, or SEOG. These aids can significantly contribute to paying off tuition charges. For active students, we can implement an amicable written demands service, while employing a more intensive collection calls service for inactive students. This also encourages students to re-enroll who may have recently dropped off, and apply for student grants. ( Contact us )
|As individuals advance in their careers and earn more, their ability and motivation to pay off student loan increase, especially when a collection agency is involved.
|Old is gold. Student loan recovery chances get better with age. In fact most students are broke when they graduate, in many cases the account becomes more collectible after 2-3 years of passing the college. Not assigning student debt to a collection agency is like leaving money on the table. Student loans impact professional and personal life of individuals in a big way.
|Higher balance = Higher Motivation to Collect
|As of 2023, the average student loan debt in the United States varies by state, but figures like $37,137 in Alabama, $34,024 in Alaska, and $37,084 in California give a general idea of the typical amounts.
Collection agencies, operating on a contingency fee basis, potentially earn more from student debts compared to other types of debts.
|Student loan collection agencies are extremely proactive and persistent
|Operating on a contingency fee model, collection agencies are quick to act when a payment is missed, promptly reaching out to students. In cases where students change their address or phone number, the agencies employ skip tracing techniques to locate and contact them on their updated contact information.
If needed collection agencies can offer more flexible repayment plans. Offering flexible repayment options that adapt to the financial situation of the borrower can help students manage their debt more effectively. Graduated repayment plans or income-driven repayment plans allow students to make smaller payments when their income is lower, which can be particularly helpful for those still in school or just starting their careers.
|Why does internal staff of colleges collect far less than Collection Agencies?
|In most colleges, staff shortages and diverse responsibilities mean that collections often receive less attention. Employees on fixed salaries, without the incentive of contingency fees, may have limited capacity to focus on collections. Unlike collection agencies, college staff typically lack advanced tools, regular training in current debt collection laws, and specialized techniques to address student excuses effectively. In contrast, professional debt collectors, who specialize in recovery and are constantly refining their skills, are adept in this field. Their expertise and experience are crucial, as those less proficient in the art of debt collection may not thrive in the industry.
Unique Features of Kinum Collection Agency
- Free Bankruptcy screening.
- Free Credit Bureau reporting in contingency collections.
- Free Change of Address check and Litigious defaulter check.
- Accounts can be further recommended to one of our national network of lawyers for filing a Legal suit to recover money.
- We can perform debt collections in both English and Spanish.
- Apart from B2C collections, we also have a dedicated Commercial Division for B2B collections.
- Serving Nationwide ( Licensed in all 50 states and Puerto Rico).
- Kinum has consistently passed SSAE 18 SOC 1 Type 2 data security compliance.
With a remarkable track record of success, as evidenced by over 1300 reviews and an impressive average rating of 4.9 out of 5, Kinum has proven its effectiveness and reliability in the debt collection sector.
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