Educational debt has become increasingly common among consumers in recent years. According to recent statistics, over 45 million Americans hold student loan debt, with the total U.S. student loan debt exceeding $1.6 trillion.
Alarmingly, about 1 in 10 borrowers have defaulted on their federal student loans. While these numbers may be shocking to some, they merely highlight the widespread nature of educational debt and the critical need to resolve accounts on the consumer and lender sides of the coin.
Educational debt collection through Lockhart, Morris & Montgomery, LLC, helps lenders recover unpaid student loans when consumers default on their payments. Not only do we specialize in assisting lenders to recoup these funds, we do so while working compassionately with borrowers to find manageable repayment solutions.
Why Does Educational Debt Happen?
As a lender, you may wonder what lies behind student loan debt. No one wants to be in debt, but unfortunately, several factors contribute to the growing educational debt crisis.
However, some of the most common causes behind consumer debt can include the following:
- The rising costs of higher education make it increasingly difficult for students to afford college without borrowing.
- Stagnant wages and challenging job markets for graduates have made it harder for many to repay their loans.
- A lack of financial literacy among young borrowers often leads to poor financial decisions.
- Unexpected life events, such as job loss, health issues, or family emergencies, can significantly impact a consumer’s repayability.
How Can LMM Help?
At Lockhart, Morris & Montgomery, we believe in a considerate approach to educational debt collection. Our services are designed to benefit both lenders and borrowers!
We put consumers at ease by employing respectful, non-threatening communication throughout the collection process. Our team is trained to actively listen to consumers’ concerns and challenges, helping us fully understand their unique situations. We offer support and guidance throughout the repayment process, helping borrowers feel empowered rather than intimidated.
Cutting-Edge Technology
Our advanced systems allow us to locate and connect with consumers efficiently, ensuring no one falls through the cracks. We use secure platforms to manage and process payments, protecting both the borrower’s and the lender’s interests.
Our data analysis capabilities enable us to develop repayment strategies that are more likely to succeed in the long term.
Payment Plans
We work closely with consumers to assess their current financial situation in detail. This thorough understanding allows us to develop realistic, and manageable repayment plans. Our goal is to ensure long-term success and avoid future defaults.
Take the First Step Toward Resolution With Lockhart, Morris & Montgomery
Educational debt is clearly a national issue, but it doesn’t have to be one that continues to burden your institution or your borrowers.
Partner with Lockhart, Morris & Montgomery to implement a considerate, effective debt collection strategy that benefits everyone involved. Contact us today to learn how our educational debt collection services can help you recover funds while supporting borrowers on their path to financial stability.
