Press Release - CU Times

Student Borrowers Seek More Communication Channels

A new survey by First Associates Loan Servicing showed student loan borrowers prefer more methods of communication with servicers than most offer.

"The response from the more than 100 individuals from around the country clearly showed that student loan borrowers want to choose the communication channel that best suits their lifestyle and that traditional servers are not providing those channels," said David Johnson, CEO of First Associates Loan Servicing.

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Press Release - American Pegasus SPC

First Associates Loan Servicing 

selected to service American Pegasus SPC

Trustee Deloitte sought agent to improve customer interaction, lower delinquency rates of auto loan program

FOR IMMEDIATE RELEASE

PRLog (Press Release) - Feb 16, 2012 -
First Associates Loan Servicing, one of the country’s fastest growing consumer loan servicers, will service loans for American Pegasus SPC.

Trustee Deloitte selected the company to improve customer service and performance of this historically challenging auto loan portfolio.

“We required an expedited transition to a recognized loan servicing agent to provide a high level of client service to our customers following the closure of the previous loan servicer” said Michael Pearson of American Pegasus SPC. “We had difficult data from the previous servicer and First Associates worked with us to ensure a smooth transition. First Associates onboarded the portfolio very quickly and have collected significant sums in a short period of time.”

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S&P Warns Student Loans May Be The Next Bubble To Busrt in US Economy

Thought the mortgage crisis was a rough ride? Buckle up for the next financial crisis. Student-loan debt may be the next major U.S.-asset bubble to burst, according to Standard & Poor's.

The problem: colleges and universities are hamstrung with lower endowments, while students have increasingly lower prospects of ever paying back their loans. Student debt now outpaces credit-card debt, approaching $1 trillion for the first time. The Project on Student Debt found that in 2008, 67 percent of college students at four-year universities were graduating with student-loan debt. That number is even higher for students at private nonprofit and for-profit colleges and universities.

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Student Loan Delinquency Rate on the Rise

If you believe conventional wisdom, student loans are “good” debt: They’re safe, lead to higher incomes, and generally pay off in the long run. The problem is that an increasing amount of evidence is showing that this thinking is distinctly unwise. Student loan default rates are soaring, and now, according to new data from the Federal Reserve Bank of New York, the delinquency rate is also ticking up: 11.2% of student loans are currently more than 90 days past due, and that’s second only to credit cards, where 12.2% of accounts are past due. That makes the delinquency rates on student loans higher than mortgages, home equity loans, auto loans, and a mysterious “other” category.

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