Student Lending Analytics Blog

Student Loan Corp. Negotiating Credit Facility With Citi; Gets 30 Day Extension With Lower Borrowing Limits

Just two days after "It's Ten Days and Counting...", it appears we have an interim answer on Student Loan Corporation's future funding.  In an 8-K filing, Student Loan Corporation provided details on an extension of their existing facility with Citi as well as the broad outlines for a one-year agreement that they are currently negotiating with Citi. 

First the extension:

"The Extension changes the expiration date of the Omnibus Credit Agreement from December 31, 2009 to January 31, 2010. In addition, the Extension lowers the maximum aggregate credit available under the Omnibus Credit Agreement from $30 billion to $10.5 billion, effective January 1, 2010."

In terms of the state of their current negotiations with Citi, the company is clear that funding costs will rise thereby reducing net income:

College Bowl Trivia: Test Your Knowledge

Which banks are sponsoring the 34 college bowl games this year and which games are they sponsoring?  Make your best guess before going to the full article.  Hint:  There are three banks sponsoring four bowl games. 

Author Suggests Making Federal Loans Contingent On Student Prospects

The book:  The Lowering of Higher Education in America: Why Financial Aid Should Be Based on Student Performance

The author:  Jackson Doby, professor emeritus of sociology at Rutgers University

Inside Higher Ed had a piece authored by Mr. Doby today titled "Subprime Student Loans".  Here are some excerpts:

What Are People Reading on the SLA Blog in December?

Here are the five most popular stories based on pageviews on Student Lending Analytics blog for the month of December:

• Opening Day At FSA Conference In Nashville

I am in Nashville with 6,000 financial aid administrators from 2,000 schools for the Federal Student Aid Conference.  Here is a summary of the opening remarks today from Bill Taggart, Chief Operating Officer of FSA and Arne Duncan, Secretary of Education:

SLA Flash Survey Results: One In Seven Financial Aid Administrators Plan To Build Preferred Lender List For Private Loans

A picture is worth a thousand words and this one does not portend good outcomes for students and families as schools are moving away en masse from developing preferred lender lists for private student loans.  Here is how 237 SLA Flash Survey participants responded to this statement:  Please describe your institution's current plan for developing a lender list for private student loans for 2010-11:

University of South Carolina Going Direct; Largest State System To Announce Shift To DL

From the University of South Carolina press release earlier this month:

"The University of South Carolina will participate in 2010 in the Federal Direct Loan Program, ensuring a secure source of federal education loans for students and their families.

He Held Up The Dems on Health Care; What Role Will He Play in Student Aid Reform?

You may have read about Senator Ben Nelson (Dem-Neb.) being the last holdout on health care reform for the Democrats (and what he was able to secure for Nebraska in return)...this got me wondering about the role he might play with student loan reform.  Here are just a few of his published comments and mentions in recent press accounts:

One High-School Senior Reflects on Lessons Learned In College Selection Process

She hoped to attend University of New Haven but ended up at East Los Angeles College.  Here is how she got there.  Here is her advice, which might be worth sharing with others:

British Solution To Rising Cost of Higher Education: Shorten Time To Degree From Three Years To Two

From the Daily Mail: 

"In a letter to university chiefs yesterday, Lord Mandelson revealed how he wished to see 'more programmes, such as foundation and fast-track degrees, that can be completed full-time in two years'.  He added: 'Over the next spending review period, we will want some shift away from full-time three year places and towards a wider variety of provision.'

Is ACS's Servicing Performance "Satisfactory" or ...?

From ACS Bid Protest Decision, which indicated that ACS's past performance received a "Satisfactory" rating from the staff managing the procurement process for the new DL Servicing contract:  

Servicer	Proposed Plan	Solution Benefits/Risks	Past Performance
ACS	Highly Satisfactory	Highly Satisfactory	Satisfactory
Great Lakes	Satisfactory	Highly Satisfactory	Satisfactory
Nelnet	Satisfactory	Satisfactory	Highly Satisfactory
PHEAA	Satisfactory	Highly Satisfactory	Highly Satisfactory
Sallie Mae	Highly Satisfactory	Highly Satisfactory	Highly Satisfactory

From Dept. of Education presentation on Additional Loan Servicers at FSA Conference (slide 39), in which FSA DL Servicing (ACS was servicer when scores were taken) scored 80 vs. 71 for FFEL Servicing, using American Consumer Satisfaction Index (ACSI):