What is a borrower paid collection cost (BPCC)?
Borrower paid collection cost, or BPCC, is the fee charged to the borrower by the collection agency. Most collection agencies charge a “contingency fee,” which means collection costs are only earned by the collection agency when the borrower makes a payment. This is noted as “Collection Costs.” The institution may also charge collection costs to the borrower, which is an actual or average cost that is assessed for the effort that the institution made to collect on the loan. This is coded as “Other Costs.” These two categories allow schools to determine which costs belong to the school, and which are assessed by the collection agency.
