The
FFELP currently serves 80 percent of all students who borrow to pay for college and plays a crucial role in the delivery of aid and benefits to students and parents.
Nelnet originates, holds, and services student loans, principally loans originated under the Federal Family Education Loan Program, referred to as the FFEL Program or
FFELP.
FFELP student loan ABS portfolio to both moderate and severe scenarios to determine the impact on existing ratings.
On average, during the 1995-to-2003 period,
FFELP consolidation loan borrowers had higher levels of consolidation loan debt than FDLP consolidation loan borrowers.
The bills seek to replace the
FFELP with direct loans by 1997, offer students educational awards in return for community service, and provide a variety of repayment plans based on income.
Recent changes to special allowance payment (SAP) calculations for
FFELP loans has put basis risk for U.
FFELP ABS going forward, as detailed in a new report.
Following the recent periods of unprecedented volatility in interest rates, Fitch conducted a study to investigate the nature and magnitude of basis risk, an important factor influencing the performance of
FFELP student loan ABS.
KHESLC was established in 1978 as a de jure municipal corporation and now maintains a 72% market share of Kentucky
FFELP student loans.
While legislative risk has always been a key rating factor for SLM, the proposal to essentially eliminate
FFELP is not incorporated in the current ratings, as the announcement follows a concerted effort to support
FFELP lenders in recent months to ensure uninterrupted access to funding for students.
Fitch has assigned Sallie Mae a
FFELP servicer rating of 'Proficient Plus'.
The rating actions are based on the quality and performance of the
FFELP loan collateral, the credit enhancement provided, and the sound legal structure.
