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Legislative risk

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Legislative risk
The risk that new or changed legislation will have a large positive or negative effect on an investment.


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Legislative risk occurs because of potential changes in current law that may erode the value of current and past tax positions.
Analysts will focus on the legislative risk inherent in the industry, growth in private education loans and associated credit risks, and student loan funding diversity and necessary credit enhancement levels.
The affirmation reflects the company's leading market share in the federally guaranteed student lending industry, earnings consistency, increasing diversity of revenues, and the reduction in near-term legislative risk with the reauthorization of the Higher Education Act, which was completed in February 2006.
 
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