Debts Will Be Collected Back From The Students Through Robocalls

In case of any default made on the federal student loan payments, your cell phone will be robocalled until the debt is paid back. This is going to be an automated calling system to the cell phones of the persons from whom the federal debts are to be collected by the government. The provision is yet to be approved by the president.

The initiative is being taken on the request of the companies like Navient and Nelnet which are servicing the federal student loans. They have asked the government that they should be allowed to robocall the persons who are delinquent for their debts.

Currently, the servicers of the loans are given the authority to robocall only those people who have given their consent to be auto-dialed and whose mobile phone numbers have been verified. They are about one third of all the customers.

The arguments have come from them those customers who get the robocalls will be expected to pay their debts back. According to Nelnet, the customers who have their dues for 30 days more than the date to return that are 20 percent of those whom the company may not robocall while those who can be robocalled are 13 percent.

The project of robocalling has also got the support and appreciation from the White House and at the moment, the government has been looking to separate the budget for this initiative. In 2013, the report of Government Accountability Office, around $94 billion of debts given to the students were in default which is 11 percent of the entire outstanding student debt.

But the collection of debts through the robocalling is not likely to give large amount of revenues to the government. According to the prediction made by the Congressional Budget Office of Management and Budget, the money that is going to be recovered would be a rounding error. More optimism has been shown by the Office of Management and Budget of Obama which believed that the addition of around $12 million to the revenue every year is probable.

FCC that is the agency which has been heatedly resisting automated calls to the mobile phones. is put in charge to implement the robocalls. During the previous week, the reports on weekly basis about the complaints of the consumers have been started to publish by the FCC and the complaints are regarding the robocalls on the mobile phones to provide the tools to software developers so that they may create the apps to block them.

According to FCC, more than 215,000 complaints have been received related to the robocalls previous year.