Student Loan Portfolio Liquidation


  • In 2008 the nation’s largest guarantor of private student loans filed for bankruptcy and the resulting bankruptcy trust became responsible for liquidating a $700+ million portfolio of defaulted student loans to pay off creditors

  • BPA was subsequently selected to take over management of the portfolio at the request of the creditors

Our Role

  • BPA actively managed the defaulted loan portfolio that included oversight of over 20 collection agencies and law firms
  • Developed valuation methodology for assessing each loan’s value and appropriate collection effort and disposition
  • Reconciled accounts with over 100 law firms. BPA located all law firms, collected lawsuit status updates from the firms, and updated all accounts accordingly to accurately report the status and value of the portfolio to the bankruptcy trust
  • BPA verified the balance calculations for all accounts, coordinated the issuance of 1099-C forms for discharge of debt, fielded all inbound calls from borrowers, and filed the appropriate tax reports to the IRS


  • BPA efforts helped produce significant results for the creditors
  • Establish compliance process and standards such that entire portfolio is in compliance with regulatory, legal, and accounting standards
  • Decreased risk by enhanced management and oversight of collection agencies and law firms and reduced borrower complaints
  • Coordinated the sale of selected loans to maximize value to creditors. Managed the process from beginning to end with prospective debt buyers to provide maximum value to the trust

For additional information, please contact:

Mark Mousseau
at 954-832-3562