Last Tuesday President Obama enacted a law requiring all student loans that are federally guaranteed to be originated by the federal government - effectively eliminating the Federal Family Education Loan Program (FFELP) starting on June 30. This is an event that, according to ABS analysts, will have a considerable and permanent impact on the SLABS market.

The education part of the Health Care and Education Affordability Reconcilation Act of 2010 (or the SAFRA) will make the role of the Department of Education (DOE) in the student loan market considerably bigger, observers said.

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