Student loan ABS

A strong capital structure boosts confidence in the timely payments of the notes, including provisions to mitigate negative carry.

The NCSLTs say whether student loan ABS trusts are “covered persons” and thus under the CFPB’s regulation is not something that an appeals court should decide.

At issue are CFPB claims that the National Collegiate Student Loan Trust (NCSLTs) had engaged in deceptive student loan debt collection and unfair litigation practices.

Fitch Ratings affirmed classes on five transactions, and upgraded class B notes on one deal, citing strong performances, plus upgraded B notes on a 2004 transaction.

Most of the deals are FFELP loans, but the sponsor and servicer entity is considered a financially weak company.

Robust salaries are a plus, but concentrating loans in a few well-paying fields presents different risks.

FFELP, Stafford consolidation loans comprise the bulk of the collateral in the transaction.

A high representation of working professional degree holders among borrowers, most notably, medical doctors, boosts confidence in the underlying collateral.

Fitch's negative sovereign-issuer rating for the U.S. casts a negative rating outlook on ECMC Group Student Loan Trust (ECMC) 2021-1, due to DOE reinsurance.

Known as MOHELA 2021-3, the trust will issue a mix of fixed- and floating-rate notes from a capital structure with three tranches, or note classes.