(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:
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.
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 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:
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.
