In addition to some $9 billion [PDF] in taxpayer-subsidized Federal Family Education Loans and untold millions in private student loans, JPMorgan, the country’s biggest bank by assets, has a private equity arm, One Equity Partners. In turn, One Equity Partners owns NCO Group, a debt collector that makes millions of dollars a year from the federal government to collect on students who’ve defaulted on their loans. And that taxpayer money is paying for some pretty abusive practices.
In 2009, Jason Fagone at Philadelphia Magazine reported on one woman’s experience with NCO as it tried to collect the $9,000 that her husband, at the time on active duty in Iraq, owed for school. At the time, Tara Burkholder told Fagone, she was working for free as a student teacher and had $92 in her checking account and a daughter to care for.