Medical and Student Loan Debt Sales Growing Explosively

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It’s a bit of an understatement to say the sale of student loans and medical debts are on the rise. The amount of student loans and medical debts being sold to collection agencies is surging. Why are we seeing this surge happening and what does it mean for lenders of these loans?

There are a few huge obvious reasons why student loan and medical debt sales are rising so rapidly. At a very base level, we’re buying more of these debt cases because there are simply far more people with student loans and medical debts than ever before. More people are going to colleges and universities than attended a decade ago, and we have more sick people than ever before. Not only is the Baby Boomer generation entering years of near-constant medical care and attention, but children are coming down with degenerative diseases and other illnesses at unprecedented rates. An increase in student loans and medical debts will naturally correspond with an increase in sales of those loans and debts.

Yet there are other factors at work here. Students have been taking on HUGE loan burdens over the last decade as tuition costs have spiked and financial aid has dwindled. Medical procedures are increasing in price as well, and the number of procedures, tests, and prescriptions the average individual undertakes has grown at the same time. The price of an education or of receiving medical care is greater than ever, and most people can’t afford either without taking on some level of debt.

Combined with a high unemployment rate and a less-than-stellar economy, it’s understandable why we’re seeing such a surge in student loan and medical debt sales these days. In fact, we expect this trend to escalate in the coming years. We won’t be surprised if, in five years, the majority of our cases are student loan or medical debt purchases!