Campus Partners, of Rockville, Md., one of the largest servicers of student loans in the U.S., is getting into the private student lending business, after it received an infusion of equity financing from AIG United Guaranty. After its initial launch this fall, Campus Partners will eventually issue ABS to help finance the lending business.
"We will rely on securitization as one of our primary financing tools," said Michael Carey, president of Campus Partners. The first securitization might take as much as 18 months to come to market. In the meantime, Campus Partners expects to keep its loans on its balance sheet.