Federal Student Loan Collection Agencies – Know Your Rights
If you’re receiving calls or letters about a federal student loan in default, you’re likely being contacted by a federal student loan collection agency. These agencies are hired by the U.S. Department of Education to collect on past-due federal loans — but they must follow the law while doing so.
At Consumer Rights Law Firm PLLC, we help protect borrowers from harassment, threats, and unfair collection tactics. If you’re being contacted by any of the agencies listed below, it’s time to understand your rights and options.
📞 Call us at 877-700-5790 or email help@consumerlawfirmcenter.com for a free case review.
🏛 List of Federal Student Loan Collection Agencies
The U.S. Department of Education and its contractors assign defaulted loans to various private collection agencies (PCAs). These agencies are required to follow the Fair Debt Collection Practices Act (FDCPA) and federal guidelines when contacting you.
Here are the most common federal student loan collection agencies:
1. F.H. Cann & Associates, Inc.
Specializes in recovering defaulted federal student loans. Frequently assigned large volumes of accounts directly from the U.S. Department of Education.
2. Action Financial Services, LLC
A certified federal contractor collecting on student loans and often sending aggressive notices.
3. Immediate Credit Recovery, Inc. (ICR)
Collects federal student loans and is known for frequent phone calls and letter campaigns.
4. Bass & Associates, P.C.
A law firm that functions as a collection agency, often used to initiate legal actions related to federal debt.
5. Coast Professional, Inc.
Handles government receivables and federal loan accounts. Has worked with the Department of Education on multiple collection contracts.
6. Central Research, Inc.
A federal contractor used by the Department of Education and other agencies for student loan collection and borrower outreach.
7. Windham Professionals
Formerly a major collector for federal student loans. They have been known to use aggressive techniques.
8. Performant Recovery, Inc.
Previously a key player in federal loan recovery. Has been involved in litigation and disputes over contract bidding.
9. Transworld Systems Inc. (TSI)
One of the largest debt collectors in the country, TSI manages federal and private student loans and may appear under various affiliated names.
10. GC Services
Previously contracted by the Department of Education, known for outbound calls and pressure tactics to collect federal debt.
⚖️ Your Rights Under the FDCPA
Even though these agencies are collecting government debt, you are still protected by laws such as the:
- Fair Debt Collection Practices Act (FDCPA)
- Higher Education Act
- Telephone Consumer Protection Act (TCPA)
That means:
- They cannot threaten arrest, wage garnishment, or lawsuits without following legal due process
- They must stop calling you at work if you request it
- They cannot harass or contact third parties about your debt
- You have the right to dispute the debt and request written verification
💡 What Should You Do If a Federal Student Loan Collector Contacts You?
- Do not ignore the communication — but also don’t rush to pay without verifying details.
- Request written verification of the debt within 30 days.
- Keep records of every call, voicemail, and letter.
- Avoid giving bank account info over the phone without documentation.
- Speak to our legal team to understand your full rights and options.
🛡 Let Consumer Rights Law Firm PLLC Help
We understand how stressful it is to be contacted about a federal student loan in default. You may feel like you’re out of options — you’re not. We’ve helped thousands of borrowers push back against illegal collection practices, negotiate settlements, and get the relief they deserve.
✅ We only get paid if we win your case
✅ No obligation, no pressure – just answers
✅ Over 15 years of experience protecting consumers
FAQ:
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What is a federal student loan?
A federal student loan is money borrowed from the U.S. Department of Education to pay for education expenses. These loans must be repaid but come with protections, flexible repayment plans, and government oversight. -
Who is eligible for a federal student loan?
Eligibility depends on being a U.S. citizen or eligible non-citizen, having a valid FAFSA application, enrollment at an eligible school, and maintaining satisfactory academic progress. -
Are federal student loans better than private loans?
Yes, federal loans offer lower interest rates, flexible repayment plans, deferment options, and protections under federal laws, making them safer compared to private loans. -
Can federal student loans be forgiven?
Yes, under programs like Public Service Loan Forgiveness, Teacher Loan Forgiveness, or Income-Driven Repayment Forgiveness, borrowers may have some or all of their federal loans forgiven. -
Who are the main federal student loan collection agencies?
Key agencies include F.H. Cann & Associates, Action Financial Services, Immediate Credit Recovery, Bass & Associates, Coast Professional, Central Research, Windham Professionals, Performant Recovery, TSI, and GC Services. -
What rights do I have under the FDCPA when contacted by a federal loan collector?
Collectors cannot harass you, threaten illegal actions, contact third parties about your debt, or continue calls to your workplace if requested. You have the right to dispute and verify debts. -
What should I do if a federal loan collector contacts me?
Do not ignore them. Request written debt verification, keep detailed records of calls and letters, avoid giving banking info without documentation, and consult a legal expert. -
Can federal student loan collectors sue or garnish my wages?
Collectors must follow legal due process and cannot bypass the law. They may pursue collection through the Department of Education’s prescribed channels but cannot act illegally. -
Why is it important to keep records of all communications?
Detailed records of calls, voicemails, and letters help track collector behavior, provide evidence of harassment or violations, and are critical if you dispute the debt or need legal assistance. -
How can Consumer Rights Law Firm PLLC assist with federal student loan collection agencies?
They protect borrowers from harassment, verify debts, negotiate settlements, guide you through your legal rights, and provide experienced representation against unlawful collection practices.