California-based Performant Financial Corp. has notified the state it expects to lay off 75 employees from its office in Indianapolis that handles the recovery of defaulted student loans. The company says it plans to conduct the layoffs between April 25 and May 7 at its subsidiary, Performant Recovery Inc.
This round of layoffs is on top of 40 employees who were previously placed on temporary furlough at this location. Performant says those workers will also not get called back to work.
The company works with student lenders in the recovery of unpaid and delinquent educational loans and receivables.
Performant says government policies in response to the pandemic, specifically regarding federal student loan processing, have significantly impacted its recovery business.
Last March, the federal government suspended principal and interest payments on federally-held student loans through September 30, 2021.