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Student lender loses ground in current credit market
South East Asia News.Net
Wednesday 23rd July, 2008
US company, SLM, otherwise known as Sallie Mae, has revealed a second-quarter profit plunge.
The student lending institution reported a loss of 72 percent, as funding costs remained high amid further weakening in the credit markets.
Net income fell to $266 million during the second quarter, from $966 million during the same quarter last year.
Sallie Mae also reported $135 million in losses and other fees.
Sallie Mae and other student lenders have been struggling to fund new business, because they rely heavily on the asset-backed securities market to generate new revenue for loans.
Also, legislative changes have reduced subsidies for federally guaranteed student loans.
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Comments on this story
` ~galljdaj+
07-24-08, 08:36 AM |
Student lender loses ground in current credit market
Reads more like manipulating losses!
Yes if the Government cuts the amounts it will pay there will be drop in profits. But not losses!
The losses are coming from some other factor(s). Have student failure to pay increased? Have the numbers of loans deminished? Are Students being left behind?
Or are bonuses and take outs increasing?
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