| Proposed FFELP Cuts Would Be "Severe," New Analysis Says
WASHINGTON, July 18 /PRNewswire/ -- "The die has yet to be cast-the potential catastrophic impact of the proposed $18 billion cuts in student loans can be averted," Kevin Bruns, executive director of America's Student Loan Providers, said in response to independent analysis released today by Mark Kantrowitz, Publisher of FinAid.org. The study examines proposed cuts to the Federal Family Education Loan Program (FFELP). "This new independent analysis speaks for itself," Kevin Bruns said. "Kantrowitz's examination exposes the irrationality of making severe cuts in lender payments when margins are already thin and much rides on FFELP's continued operation as a source of low-cost college loans." The new analysis (http://www.finaid.org/educators/2007subsidycuts.txt) is largely consistent with a recent report by the Congressional Research Service, concluding that Sallie Mae's after-tax margin was less than a half a cent on the dollar (excerpt below).
Interest rates on existing variable rate student loans to increase ...
There is still time to lock in lower interest rates through student loan consolidation; Sallie Mae offers tips and advice on managing repaymentRESTON, Va., June 27, 2007Interest rates on existing, variable-rate federal student loans will jump by 8 basis points (0.08 percent) this Sunday, July 1. Customers who submit their Federal Consolidation Loan application online by midnight (PDT) on June 30, can avoid the increase and lock in todays lower interest rate. Many students with variable-rate student loans stand to benefit by consolidating their student loans before July 1. An application for student loan consolidation and related information are available at www.SallieMae.com/Consolidation. Completing your student loan consolidation application is quick and easy, said Patricia Scherschel, vice president of loan consolidation, Sallie Mae.
With Billions at Stake in Sallie Mae Buyout, SEIU, Students to ...
WASHINGTON, July 12 /PRNewswire-USNewswire/ -- Coming just as Congress passed a new bill to cut nearly $19 billion from lender subsidies to pay for increased aid to college students, a new campaign will kick off Monday to bring the voices and stories of middle class and low-income families hard hit by soaring education costs and high interest rates to Congress and the private equity suitors of Sallie Mae (NYSE: SLM) , J.C. Flowers, Bank of America, and J.P. Morgan Chase. "It is in the best interest of America as a whole to support a student loan industry that is more fair and more affordable. Yesterday, the House sent a message that if the industry must develop a model that generates profits and does what the student loan program was designed to do -- make it easier for students to afford to go to college," said Stephen Lerner, director of SEIU's Private Equity Project.
$25B Sallie Mae buyout may collapse
RESTON, Va., July 11 A $25 billion deal to buy out Sallie Mae, the U.S. student loan firm, could collapse because of pending federal legislation, prospective buyers said.
The group, led by private-equity firm J.C. Flowers & Co., told SLM Corp., commonly known as Sallie Mae, that congressional legislation, which would cut federal subsidies to student lenders, "could result in a failure of the conditions to the closing of the merger to be satisfied," SLM said Wednesday.
Other members of the group are Bank of America Corp., J. P. Morgan Chase & Co. and private-equity firm Friedman Fleischer & Lowe LLC.
Sallie Mae said it "strongly" disagreed with the group's assertion and planned to proceed toward the merger's closing "as rapidly as possible."
The Reston, Va., lender said it would "take all steps to protect shareholders' interests."
The deal carries a breakup fee of $900 million.
Field of Dreams expands for local investor group
An investor group led by David Brooks, Chairman & CEO of McKinney-based Independent Bank Group and Vincent J. Viola of New York, announced the purchase today of Noel-Levitz, the nation's leading enrollment management consulting firm for colleges and universities from student loan provider Sallie Mae. Members of the Noel-Levitz senior management team have also invested in the company as part of the transaction and will own a substantial portion of the company. Specific terms of the transaction were not disclosed.According to Brooks, "I am immensely excited about the opportunity to be associated with Noel-Levitz. While serving at Baylor University as the chief financial officer and chief operating officer, I saw first-hand the tremendous impact of their work with colleges and universities and the students they serve.
White House Opposes Cuts To Student Lenders
Washington, D.C. (AHN) - The White House expressed opposition Wednesday to a U.S. Senate bill that would slash federal student lender subsidies and boost student grants, but expressed a willingness to work with lawmakers on a financial aid overhaul. The announcement by the Bush administration comes as the Senate nears a vote on the plan similar to one already approved by the House. Introduced by Senate Education committee Chairman Sen. Edward Kennedy (D-MA), the measure would reduce to 97 percent the insurance paid by the government on defaulted loans, repealing a provision that allowed certain lenders to qualify as exceptional performers and receive up to a 99 percent guarantee. The House plan would cut a billion more from student lenders, such as Sallie Mae and Citigroup's Student Loan Corp.
Options for victims of predatory student loans
Q: As a 45-year-old single mom, I borrowed money from Sallie Mae to attend the University of Washington in order to improve myself, and for my son to attend WyoTech, a Wyoming-based vocational school to help him start a career. It was difficult to work full-time while going to college. I got a better job but my higher salary is minimized by Sallie Mae's questionable costs. Sallie Mae's $60,000 in student loans will cost us $140,000, and many years of financial bondage. UW staff behaved wonderfully. However, as the signer for my son, I have concerns about the WyoTech's appearance of being cozy with Sallie Mae. My chief concerns include: Teaser interest rates for my son of around 2 percent, but they jumped to 6-7 percent when it came time for us to start repaying loans.
Sallie Mae's Managed Loan Portfolio Grows 18 Percent from Prior ...
RESTON, Va., July 17 /PRNewswire-FirstCall/ -- SLM Corporation , commonly known as Sallie Mae, today reported second-quarter 2007 earnings and performance results that include an 18-percent increase in managed student loans from the year-ago quarter, with the company's portfolio topping $153 billion. Second-quarter 2007 preferred-channel loan originations were $3.6 billion, and loans originated through the company's internal brands, a segment of total preferred-channel loan originations, grew 39 percent from the year-ago period to $2.4 billion. (Logo: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a ) Preferred-channel loan originations include loans originated by the company's internal lending brands and external lending partners. Preferred- channel originations in the first half of 2007 were $11.6 billion, and internal brands originated $7.2 billion, or 62 percent, of the total.
|
