Federal Student Loans Up 18% After First 3Q of 2009-10; GradPLUS Sees Fastest Growth

Federal Student Aid has updated their data center with the latest figures on federal loan and grant volumes. SLA analyzes disbursement figures for these loan programs one quarter after their initial release since significant adjustments are often made to the most recently released figures.  Observations: Overall, federal loans (Stafford, Parent PLUS and Grad PLUS) grew [...]

What Ails Sallie Mae?

The stock fell over 10% today to $10.34 after announcing their earnings after the close yesterday and their conference call (thanks to Seeking Alpha) this morning.  Here is an abbreviated look at the issues that investors seem focused on: Continued declines in their private loan originations.  While a seasonally slow quarter (the quarter that sets [...]

Is There Really A Private Student Loan Available With A 1.78% Interest Rate?

With peak lending (and borrowing season) upon us, I thought it would be useful to update my previous post on state alternative loan programs.  Disclaimer:  Private student loans should be considered as a “last resort” only.  Students and parents should access all other available forms of aid, including scholarships, federal grants (e.g., Pell) and federal [...]

Sallie Mae To Move HQ To Delaware; FFELP Comes To An End

From Business Wire:  SLM Corporation (NYSE: SLM – News), commonly known as Sallie Mae, today announced that it will relocate its corporate headquarters to near Newark, Del., by March 31, 2011. The relocation to Delaware is consistent with other strategic initiatives the company is taking to align its cost structure with its continuing businesses following the [...]

Rates They Are A Changing…

With peak lending season upon us, six lenders have recently changed the margins on their private student loans with the overall trend being down (four of the six reduced margins).  Here is a table (sorted alphabetically) showing both the current rates and the previous rates: Current Previous Max. Max. Lender name Low High Fees Low [...]

Looking For A Private Student Loan Resource For Your Students?: SLA Updates And Improves Private Loan Options Site

For those looking for a neutral, timely and comprehensive private loan lender list, SLA created Private Loan Options with the following features: Lists sixteen major lenders, including credit unions, regional and national lenders Details interest rate ranges and fees for each loan product Provides timely updates when changes occur to lender margins or interest rate [...]

The $5.4 Billion Private Student Loan Problem

As policymakers and legislators consider treatment of private student loans in bankruptcy as well as what role the consumer protection agency should play, First Marblehead's recent 10-Q provides more evidence of subprime student loans made in the 2004-07 period.  Sallie Mae executives recently noted in an investor meeting that of the $6 billion in non-traditional [...]

Dept. of Education Asking Non-Profits For Info Regarding Servicing Capabilities

I came across this listing in the Federal Business Opportunities Website which was originally posted on April 29th and updated on May 6th.  It requests information from non-profits interested in servicing federal student loans as part of the set-aside in the Student Aid and Fiscal Responsibility Act.  Here is a link to the document.  Here [...]

For-Profit Education Stocks Soar In Late Trade; Inside Higher Ed. Article Provides A Clue

From Yahoo Finance: Symbol Last Trade Change Volume Intraday Related Info APOL 3:48PM EDT 58.10 5.32 10.08% 6,289,027 DV 3:48PM EDT 61.97 2.81 4.75% 1,717,115 ESI 3:48PM EDT 110.16 7.65 7.46% 1,718,473 COCO 3:48PM EDT 15.85 1.74 12.33% 4,306,734 From Inside Higher Ed:  WASHINGTON — Robert Shireman, the deputy under secretary of education who led [...]

SLA Blog To Return in September

Given my backlog of projects, research interests and website updates which I never seem to get around to, I thought it made sense to hit the pause button on the blog for the summer.  Look for the blog to return in early September.  I will be continuing to monitor the private student loan market and [...]