Saying that financing education through the asset-backed securities market has become uneconomical in the current environment, a Pennsylvania Congressman has led an effort in the House to pressure two U.S. secretaries to help restore liquidity to the FFELP student program. Rep. Paul Kanjorski (D-Penn.), sent a letter to Treasury Secretary Henry M. Paulson, Jr. and Education Secretary Margaret Spellings urging them to "work without delay ... to address this problem before it significantly decreases access to higher education opportunities for students and their families." Earlier this month, Poway, Calif.-based College Loan Corp. said that it would exit the FFELP loan business, effective March 1. Also, student loan providers who relied on the auction rate markets for liquidity have faced challenges as several auctions have failed. "Recent Congressional action has decimated the Federal Family Education Loan Program, essentially making it impossible for midsized companies like College Loan Corporation to participate in the federal loan marketplace," said CLC's executive vice president Joanna Acoccella, according to reports. "In addition, continuing disruptions in the credit markets have compounded the impact of the legislation." In a letter singed by 20 other colleagues, Kanjorski said that FFELP lenders have "provided the capital that has enabled tens of millions of Americans to obtain an affordable college education."
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The bank is a top auto lender, with a managed portfolio of $7.1 million through December 2023, and has a strong servicing track record.
3h ago -
The initial protection amount, Moody's says, is 12.5% of the total reference pool and equals the principal amount of the rated and unrated issued notes.
9h ago -
Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
April 16 -
The Federal Reserve chair's comments coincide with the spring meeting of the International Monetary Fund and the World Bank Group in Washington. They also come as groups like the Basel Committee on Banking Supervision are being scrutinized.
April 16 -
The Federal Home Loan Bank System stepped up advances by 37% or more to Silicon Valley, Signature and First Republic banks ahead of their failures, the GAO says in a post-mortem on last year's banking crisis. The findings add to the debate about whether the system should be a lender of last resort.
April 16 -
ADMT 2024-NQM2 will repay senior position investors on a pro-rata basis, while the mezzanine and subordinate notes will be repaid sequentially.
April 16