Update (9/20/09): With new data available, SLA has raised their estimate to over 85% of FFEL loans being sold to the Department through the ECASLA financing programs.
Based on SLA's estimates, 68% of loans disbursed through the FFEL program for 2008-09 are likely to be financed through the ECASLA financing programs, also referred to as the Loan Participation and Purchase programs. The Dept. of Education recently updated their Loan Purchase Program Activity Reports, which are now current through September 1, 2009. I have created a spreadsheet that lists participation by lender in each of the two programs: Download Loan_Purchase_Activity_Reports
Here are some highlights:
Top ten participants in the Loan Purchase Commitment program:
| Aggregate Price of FFEL | |
| Lender | Loans Sold to the Dept. |
| Wells Fargo Education Financial Services | $3,808,886,116 |
| Wachovia Education Finance | $3,298,458,799 |
| JPMorgan Chase Bank | $2,354,850,470 |
| Edamerica | $1,519,165,669 |
| US Bank | $1,401,394,590 |
| The Student Loan Corporation | $1,236,416,117 |
| Bank of America Corp | $659,053,208 |
| KeyBank National Association | $455,478,397 |
| National Education Loan Network (NELNET) | $450,528,915 |
| Higher ED Ln Auth of the State of Missouri (MOHELA) | $400,218,585 |
Top ten participants in the Loan Participation Purchase program:
| Aggregate Participation | |
| Lender | Units Sold to Dept. as of 9/1/09 |
| SLM Education Credit Finance Corp. | $19,849,928,784 |
| The Student Loan Corporation | $2,855,731,199 |
| National Education Loan Network (NELNET) | $2,185,689,719 |
| Wachovia Education Finance | $1,894,531,960 |
| Edamerica | $1,605,399,360 |
| Access Group | $902,989,212 |
| Higher ED Ln Auth of the State of Missouri (MOHELA) | $681,444,119 |
| KYHESLC | $481,407,675 |
| Utah Higher Education Assistance Authority | $423,235,777 |
| ALL Student Loan Corp | $306,596,132 |
Overall, as of September 1st, $32.9 billion of participation interests had been sold to the Dept. while $18.2 billion of FFEL loans had been sold. Please note that the same loans can appear in both programs, as in the case where a lender sells a participation interest first and then later decides to "put" (or sell) the loan to the Dept. In early August, the Dept. announced that they would be extending the final purchase date to October 15th, at which point there should be a final accounting for the 2008-09 academic year.
So, how did I arrive at the 68% figure in the headline?
- An SLA analysis of reports from the Dept. of Education Data Center indicated that $78.9 billion of federal student loans have been disbursed for the 2008-09 academic year.
- Based on data analyzed on the Dept. of Education Data Center, the FFEL/DL volume split for 2008-09 is approximately 75/25, putting FFEL disbursement volume at $58.7 billion.
- Total loans participating in both ECASLA programs is approximately $40 billion.
- Add the loans sold to the Dept. as of July 28, 2009 which is $14.3 billion to the outstanding balance of participation units on July 31, 2009 which is $25.0 billion.
- Again, we should have a full accounting of these programs by mid-October.
- Add the loans sold to the Dept. as of July 28, 2009 which is $14.3 billion to the outstanding balance of participation units on July 31, 2009 which is $25.0 billion.
Update (9/10/09): An earlier version of this post had estimated that 75% of FFELP loans had been financed through ECASLA programs. Based on new information on FFELP disbursements provided by the Dept. of Education Data Center, SLA's estimate has been reduced to 68%.
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