The Obama administration has proposed a plan that will make it easier for private debt collectors to reach delinquent consumers on their cellphones, making college graduates who are behind on student loan payments a target for robo-calls.
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The plan, which critics say will offer no substantial increase in collections, is designed to eliminate a small portion of the federal deficit that currently hovers around $3 trillion.
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While Democrats who support the president have declined to comment on the proposal, their silence may convey a measure of criticism for the plan that has emerged when the national unemployment rate is soaring, the economic landscape is bleak and Obama is seeking re-election to the White House.
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A report put forth by the Treasury Department’s Financial Management Service, shows that the Education Department referred $28.8 billion to 22 private debt collection companies alone.Â