The U.S. Department of Education has rehired two of the debt collection companies that it said last year would be fired for misleading student loan borrowers, newly released federal records show.
Department officials announced in February 2015 that they would 鈥渆nd鈥 the contracts of five debt collectors, accusing the companies of making 鈥渕aterially inaccurate representations鈥 to borrowers trying to get their loans out of default.
But in the last few months of 2015, the department sent two of those companies new batches of defaulted student loans to manage. Coast Professional received an additional $863.5 million worth of student loans, and National Recoveries added $679.8 million to its inventory, according to federal data released last week.
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