President Barack Obama is endorsing a new debt-collecting tactic that would allow private collectors to increase calls to cellphones, particularly to indebted college students.
Debt collectors would be allowed to contact debtors by cellphone if they have failed to make payments, according to a deficit reduction plan submitted to Congress in September.
The plan said this method should be more successful in collecting payments than past efforts, as people rely less on landline phones and primarily use cellphones.
The Associated Press reported Tuesday contact will be made through “robocalls” — automated calls that utilize prerecorded messages delivered by computers.
If more debt collectors begin calling cellphones, students with debt could be on the receiving end.
The tactic will be successful for the federal government but could put greater strain on indebted students, said Emily Hester, Student Financial Management Center coordinator.
Hester said students are the new target of these type of debt calls.
She said the shift to cellphones is wise, especially when trying to successfully communicate with college students.
But educating students about the loans they apply for is a wiser plan, she said.
Students have many options on how to pay off loans, but many often accept loans without first considering the best payment option, Hester said.
Sarah Odom, biology freshman, said these calls would be annoying, but more students in debt should be more willing to seek help.
Odom said many students do not admit to having debt issues and do not seek ways to solve the problem, but cellphone reminders would not help.
“I wouldn’t take a cellphone call from a debt collector seriously,” she said.
Odom said she has taken out loans but isn’t worried about paying them yet because she is only a freshman.
Max Smith, accounting sophomore, said the calls would be an effective reminder to students who have many obligations and put debt in the back of their minds.
 
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Contact Brian Sibille at [email protected]