What the ARM Industry Needs to Know as Federal Student Loan Collections Resume
After a multi-year pause initiated during the COVID-19 pandemic, the U.S. Department of Education has confirmed that collections on defaulted federal student loans will resume on May 5, 2025. This shift carries significant implications for the ARM industry — especially those engaged in debt recovery for educational and government portfolios. With nearly 10 million borrowers expected to be in default and only 38% of borrowers currently in active repayment, the market is poised for a large-scale operational resurgence.
CFPB Revokes Controversial Medical Debt Advisory Opinion in Response to Industry Pushback
In a major win for the accounts receivable and collections industry, the Consumer Financial Protection Bureau (CFPB) announced that it will revoke its controversial advisory opinion on medical debt collection, originally slated to go into effect in January 2025. The decision comes after significant legal challenges and lobbying efforts led by ACA International and other stakeholders.
