Student Lending Analytics Blog

What's Up With the Parent PLUS Loan Auction?

(See Related Posts below for updates on the PLUS Loan Auction)

I have spent some time this afternoon searching for an update on the pilot PLUS Loan Auction, the mechanism by which the Department of Education would designate two lenders to be exclusive PLUS loan providers for each state.  Their selections would be based on a closed bidding process described in the College Cost Reduction Act. 

The last update I came across was posted in NASFAA News on November 13, 2008.  Here were a few excerpts from that report:

Sallie Mae Signature Loan Terms Modified on Company and Partner Websites

I noticed the following addition recently to the Citizen's Bank Signature Loan webpage which also appears on the Sallie Mae Signature site also:

At MyRichUncle, The Exodus Continues

The Chairman of MRU's audit committee, Richmond Fish, resigned, according to an 8-K filing on Friday (always a good time to deliver bad news).  The company will now need to find two independent directors to serve on their audit committee in order to comply with NASDAQ listing standards which may be a tall order with the stock price at 3.5 cents/share.  The company has been actively seeking to raise new capital to enable them to make loans again.   

Just Call it the BIG Bad Bank Proposal

With the Obama Administration's comprehensive plan to deal with toxic assets just days away, trial balloons are being floated about Washington.  The most popular framework being bandied about is to create a "bad bank" to purchase the toxic mortgage backed securities and other assets off bank's balance sheets.  This would hopefully encourage more private investment in these banks which in turn would provide banks with confidence to lend again. 

Time Article Details Rise and Fall of Securitization Markets

Time Inc. describes how the current freeze in securitization markets is tightening credit markets and highlights the steps needed to make it a viable financing vehicle in the future:

ACS, Direct Loan Servicer, Indicates Strength in Student Loan Segment During 4Q Conf. Call

Affiliated Computer Services (ACS) provided some commentary on the strength of their student loan business during their 4Q conference call today (thanks to Seeking Alpha for their transcript).  The comments, while somewhat cryptic, seem to indicate they are gaining share in a challenging marketplace. 

National Financial Literacy Challenge Results Are In....

I posted on this topic earlier when the contest was first kicked off.  Here were the results from the spring 2008 contest:

Should High School Students Be Required to Pass Financial Literacy Test to Graduate?

The Wall Street Journal's The Wallet Blog ponders the question in a blog post today with several interesting new developments:

Financial Aid Directors in the News

Here are recent articles featuring insights from the financial aid community:

Informative Q&A with Mark Kantrowitz

The  Detroit Free Press had an information webchat with Mark Kantrowitz today.  Download the transcript here:  Download Mark_Kantrowitz_WebChat_012909

Here were the topics covered, which provide a sense of the types of questions parents and students have at this time of the year: