With 23 collection agencies working on the U.S. Department of Education's student loan collection contract, and the overall market for higher education debt booming, at least one private equity giant is considering whether to acquire collection agencies involved in the growing niche.

Carlyle Group in a report by FOX Business was cited as one of the firms reviewing the student loan market. Wall Street sees a possible opportunity given that many economists predict massive student loan defaults loom as a result of rising college cost and falling incomes.

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