Education Dept. Ruled Irrational In Nixing Debt Collection Deal

Law360 (September 17, 2018, 8:43 PM EDT) -- The U.S. Department of Education lacked a rational basis for canceling a hotly contested solicitation for student loan debt collection services, a U.S. Court of Federal Claims judge has ruled, sustaining eight consolidated protests filed by collection agencies.

The Education Department did not provide sufficient explanation to support its proposed replacement program for the canceled private collection agency solicitation, lacking the required "reasoned analysis" to support its change in direction, Judge Thomas C. Wheeler ruled Friday, granting a permanent injunction to FMS Investment Corp. and seven other collection agencies.

"The [administrative record] before the court is not enough to show that...

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