In an 8-K filing on Friday, December 19, 2008, My Rich Uncle indicated that the delinquency rates on their prime and pre-prime private student loan portfolios had exceeded their covenants in their loan agreements.
The U.S. Bank Gap Education Loan is no longer appearing on their web page as one of their supplemental loan options. This product was a unique one given that its index was the 91-day Treasury Bill, which is yielding 0.01% today (yes, you are reading that correctly, 1/100th of 1%). Most other loans are priced using a Prime Rate or LIBOR index.
With schools contemplating whether or not to develop alternative lender lists for their students, here is one good reason why: they can save your students money.
While it seems that more companies get it when it comes to responding personally to customer inquiries, others simply do not. I remember I sent an email earlier this year to the United Airlines CEO (glenn.tilton@united.com) to let him know about the dilapidated condition of the United Terminal area in Orlando (wires coming off the exposed ceilings, dust being blown throughout the terminal, etc.). Ten hours later, I had a personalized response from an Executive Customer service person:
