Deutsche Bank purchased of $67 million of student loans from Northwestern University via its Affiliated Loan Program for Students (“ALPS”).
This program is designed to help international and domestic students fund their education in the current global financial crisis. The University of Chicago’s Booth School of Business and other business schools have also recently joined the program.
“We are aware of the challenges students face in the current economic environment and want to use our resources to create and invest in a program that will benefit them, as well as some of the most prestigious schools in the U.S.,” said Fred Brettschneider, head of global markets Americas at Deutsche Bank. “We could not be more pleased with the development of ALPS and its immediate success since launching just a few months ago.”
“We were pleased with the flexibility shown by the Deutsche Bank consortium,” said Ingrid Stafford, associate vice president for financial operations and treasurer at Northwestern. “We believe that the program will provide liquidity for the University in a manner that will be seamless to our students.”
ALPS, previously the “International Student Loan Program” and originally conceived under the convening authority of Graduate Management Admission Council, evolved into a loan program to be provided by a consortium of experienced organizations in the student loan arena.
Led by Deutsche Bank, the consortium includes Access Group as program administrator and Moehn and Associates as program manager.
Not like other programs of its type, ALPS packages the loans directly into securities which can be bought by capital markets players like Deutsche Bank, offering a source of liquidity to universities.