Student Lending Analytics Blog

Remembering the Caddie Master...and His Lesson of Persistence

I got some sad news last week that my first boss, Thomas Roy, caddie master for 40 years at Alpine Country Club had passed away.  I first met T. Roy (as he was known) almost 30 years ago.  I had gotten my working papers and headed up to Alpine Country Club with some friends to find out what caddying was all about.  I didn't know much about golf, I didn't know much about caddying but I did know that I needed a summer job to earn some money.  

Here's One Way To Boost High School Graduation Rates...

From the Arkansas Democrat-Gazette: 

"The Arkansas Department of Education says 58 public high schools inflated Algebra I and geometry grades of 20 percent or more of their students during the last year...The inflation report compares the grades of high school students who took Algebra I and geometry in the 2008-09 school year with their scores on the 2009 End of Course tests in those subjects.  High schools identified as inflating grades were those in which 20 percent or more of students made an A or B in math courses but scored at below-proficient levels on corresponding state exams."

Wondering Why First Marblehead Shares Jumped 26% Today?

I was also since there were no announcements from the company.  Alas, Reuters has the answer for us in an article titled "First Marblehead shares up on loan guarantor plan."  Apparently, TERI, the largest not-for-profit guarantor of private student loans, is expected to file a bankruptcy reorganization plan by August 26th.  TERI had acted as guarantor for First Marblehead student loan securitizations so coming out of bankruptcy would seem to be a positive for FMD (or at least that's what investors seem to be thinking today anyway).

Related article:

• Boston Globe:  "Big trades in First Marblehead trigger concerns"

A Public Option for Banking? It's Working In North Dakota

I came across the fact that North Dakota has a state-owned bank since it also administers the Dakota Education Alternative Loan (DEAL) program, which is one of the better state-run private loan programs, in terms of pricing.  Here are the current terms of their loan program:

Rules For Predicting Financial Markets

If anyone asks you to make predictions about the fickle financial markets (or events in Washington for that matter), it is helpful to remember these two rules: 

Rule #1:  Don't be specific (e.g., the Dow Jones Industrial Average is going up from here is probably safer than the Dow will be at 10,500 by year-end). 
Rule #2:  Don't give a date range over which the prediction will take place.

I was reminded of this difficulty in predicting financial markets when I saw this headline earlier this  month in the Wall Street Journal:  "Some investors bet on Treasurys:  Bond-fund managers see yields staying at 2.75% to 3.25% all year."  It kind of hurts your credibility as a market seer when less than three weeks later the yield on the 10-year Treasury rests at 3.48%. 

How Education Affects the Economy: A McKinsey Study

On the reading list for the weekend:  The Economic Impact of the Achievement Gap in America's Schools
from McKinsey and Company, the management consulting firm. 

Related news:

• Tom Friedman column in NY Times:  "Swimming Without A Suit"

India Sees Increased Delinquencies on Student Loans

We do live in a connected world!  Here are some excerpts from the Rupee Times (which sound eerily familiar to private loan issues here in the U.S.):

Looking for Ways to Pay off Those Student Loans?: Become an Entrepreneur in College

Interesting insights as to why your college years are the best time to start a new business (think Michael Dell, who started his Dell Computers in his UT dorm room). 

Corruption: A Growth Business in A Recession?

Is it just me or has anyone else been surprised about the recent rash of headlines about corruption.  In case, you missed them: