It is well known that the private loan market is seeing near-explosive growth. Now, the riskier side of such growth is coming to light, as Moody's Investors Service placed the rating of more than 16 notes in about a dozen student loan securitizations on review for possible downgrade.

The notes under scrutiny were issued from the National Collegiate Student Loan Trust between 2003 and 2007, and represent about $935 million in ABS. Moody's put the securities under review because the underlying loans, originated under the Education Resources Institute's (TERI) credit-ready and credit-worthy programs, are performing worse than expected. The question is whether the securitizations' existing credit enhancement will be enough to support their current ratings, which generally range from A2' to Baa3'.

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