The Pennsylvania Higher Education Assistance Agency is making its first trip to the securitization market in over a year.

It’s also first time the authority has marketed bonds backed by federally guaranteed student loans since Moody’s Investors Service and Fitch Ratings raised the alarm about the slowing rate of repayment on this collateral. Last year, the two rating agencies warned that increased use of generous repayment plans for Federal Family Education Loans put many FFELP bonds are risk of not paying off at maturity.  Both have amended their ratings criteria and are in the process of reviewing ratings on billions of dollars of existing securities.

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