FAP731: Sallie Mae Credit Downgrade, HEA, Tires, Mail Bag

7 February 2008 1 views No Comment

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Student Financial Aid News
+ This weekend is College Goal Sunday for a lot of states
+ Inside Higher Ed: Posturing, panicking and backpedaling and, of course, politicking — all of those were in ample supply Wednesday as lobbyists, lawmakers and other players prepared for today’s House of Representatives debate over legislation to renew the Higher Education Act.
+ After all was said and done, not much to report in terms of significant changes yet
+ NASFAA: “Standard & Poor’s lowered its credit rating on SLM Corp. (ticker: SLM) to just one step above junk territory and warned it could be cut further, saying the student lender better known as Sallie Mae faces pressure on funding, profits and credit quality,” The Wall Street Journal reports. “The two-notch downgrade after the market closed Monday – to BBB- from BBB+ – was the latest blow for a company that in the past year has seen a $25 billion buyout deal fall apart, margins in its core federally guaranteed student loan business squeezed by cuts to government subsidies and difficulties raising funds in the wake of the credit crisis sparked last summer. Sallie Mae agreed to costly terms last month to secure commitments for a $31 billion credit line needed to fund its business over the next year. S&P raised doubt about that deal Monday, saying it is keeping Sallie Mae’s ratings on watch for a downgrade given the possibility those commitments are subject to conditions that could keep the deal from closing as expected.”
+ What does this mean for you? Sallie Mae private student loans will likely get harder to obtain, if the financing falls through
+ It will also mean that they’ll need to continue deriving revenue from as many sources as possible, so it’s possible that might include more aggressive fee structures, especially for late payments and defaults
+ Make sure you always make your payments on time
+ Consider consolidating your student loans

Scholarship Update
+ Bridgestone Firestone Safety Scholars Essay Contest
+ Students 16-21 who are enrolled full-time. You must have a valid drivers license.
+ $5,000 (3) or/and a set of Bridgestone Firestone tires.
+ Deadline: July 31
+ You must submit a 1-3 minute video relating to automobile safety. The essay should discuss effective ways to improve driver safety for drivers aged 16-21 and ideas on the best and most effective way to communicate to and educate drivers on the topic discussed.
+ Details at our free college scholarship search site

Mail Bag
+ JB wrote in: hi….thansk for the financial aid guide, it was a great primer as i prepare to find all sorts of monies for my education….this leads me to ask about such a guide for disabled veterans such as myself about to start a phd program…i’m looking for money to help or to pay for my phd degree which i start in the fall (fall ‘08)…do you have and can you provide some insights? thanks….
+ James wrote in: Please explain the interaction between athletic, needs based, & academic scholarships. My daughter was told that she could not combine her (partial) athletic scholarship with a needs based scholarship.
+ Mark Kantrowitz wrote in: We’re trying to get the word out about our FAFSA video to as many educators and students as possible. Any chance you could mention or link to the video?
+ Justin wrote in: What equipment do you use to make your show?
+ Elizabeth wrote in on MySpace: There is a company that is doing Federal Consolidation and I need help getting the word out about the investigation that is going on with them. The company started out as Student Funding Services but was raided on May 24 2007 for forging Promissory notes, trolling NSLDS, and employees doing esignitures, for barrowers that were never even spoken to, on company computers, also the company is under investigation for offering rates that could not possibly be delivered. This company is still under investigation by the department of education (I can provide the name and number of the special agent if you need clarification). The company is now doing buisness as “STUDENT RESOURCES CORPERATION” and I have information that that the same things are still going on.

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