Student Loan Blog

After hitting a new high of $443 million in charge-offs on its student loans this past quarter, major student lender Sallie Mae anticipates a slowdown in these student loan defaults, the company announced during its third-quarter earnings call yesterday (SLM Corp. Q3 Earnings Call Transcript, Oct. 21, 2009). Although Sallie Mae’s student loan ...

A bill to overhaul the student loan industry may reach Congress as early as next week; education-committee chairs are working behind the scenes on a piece of legislation that would eliminate the third-party student loan system called the Federal Family Education Loan Program, The Chronicle of Higher Education reports (“Behind the Scenes, a ...

It’s “all hands on deck” for federal student loan lenders. The banks and third-party student loan providers that make up the Federal Family Education Loan Program have made it abundantly clear that they’re not going to roll over and accept the terms of the Obama administration’s proposal to axe their loan program in favor of the Education ...

Risha Renee Shaw — who graduated in November 2008 as a licensed practical nurse from Keiser Career College — paid her way through school by fraudulently obtaining up to $18,000 in student loans, reports the St. Petersburg Times (“Student Loan Scheme Stole IDs of Elderly, Police Say,” March 20, 2009). Arrested last Friday by ...

The direct student loan program — which President Obama wants to establish as the sole provider of federal student loans by 2010 — is swiftly gaining ground on the Federal Family Education Loan Program. In the past year, the number of college and universities originating loans through the Direct Loan Program has increased by more ...

Sallie Mae — the largest provider of college student loans in the country — may ultimately see three quarters of its student loan business evaporate under a plan by President Obama that would end government subsidies to third-party lenders and establish the federal government as the sole provider of federal student loans, ...

Student loan provider Sallie Mae reported a $159 million loss this quarter as the ongoing credit crisis continues to pose financial challenges for borrowers (“Sallie Mae Reports $159-Million Loss and More Delinquencies by Borrowers,” The Chronicle of Higher Education, Oct. 23, 2008). Sallie Mae said that a rapid rise in delinquencies on ...

Despite an 11.5-percent boost in student enrollment and an 18.3-percent growth in revenue over the last quarter, Corinthian Colleges saw its shares tumble in afternoon NASDAQ trading on Tuesday, as investor fears persist of rising defaults on the school network’s student loans (“Defaults Drown Corinthian,” Forbes, Aug. 26, 2008).Corinthian’s stock ...

A number of lenders who abandoned the federal student loan market in recent months may be returning, in light of a new law designed to keep struggling lenders afloat, according to a Dow Jones Newswires article. Many of the 102 companies that scaled back or withdrew from the Federal Family Education Loan Program, in which federal student loans ...

Students at community colleges, for-profit universities, and other less competitive institutions may have trouble finding a lender willing to offer them federal student loans as some of the nation’s biggest banks pare down the list of schools they serve, according to an article that appeared today in The New York Times (“Student Loans Start to ...