unlike other loans sent to collections, collection costs are added to the loan. the amount varies by loan type, but it’s typically 25%. so for example, if you o

unlike other loans sent to collections, collection costs are added to the loan. the amount varies by loan type, but it’s typically 25%. so for example, if you owe 50k: you miss a few payments, and put into default, the loan is sold.. and you immediately owe 62.5k. they can then start garnishing wages and any tax refunds based on this amount.