He regularly represents clients engaged in public and private offerings of debt and equity securities secured by auto loans and leases, marketplace and unsecured consumer loans, private and federally guaranteed student loans
, mortgage loans, equipment, trade receivables, and other assets.
Most programs advise students with educational debt to consider deferment or forbearance (interest continues to accrue with the latter), available for most federally guaranteed student loans
Government guaranteed student loans
fall under special provisions in the BIA for student debt that mandate that student loans cannot be automatically discharged in a bankruptcy or consumer proposal unless you have ceased to be a student for at least seven years.
Early in the decade, Congress established the Student Loan Marketing Authority (Sallie Mae) to support a secondary market for government guaranteed student loans
. (16) Sallie Mae was structured to borrow directly from the US Treasury and then buy guaranteed student loans
from lenders so that they had more capital to make new loans.
The reason for this failure is that the disintermediation created by government guaranteed student loans
frees schools from having to worry about whether students who secure their loans through the financial aid office will actually repay the debt.
Gaylon Layfield, III, President and Chief Executive Officer, commented: "Excluding our investments in two alternative asset classes, mortgage warehouse lending and guaranteed student loans
, gross loans increased $44.1 million, or 7.0%, since the end of first quarter 2015.
Additionally, non-federally guaranteed student loans
saw a 2.1% improvement to $3.5 billion, up 11.3% for the year.
These companies even remained profitable during the financial collapse and the recession, thanks in part to a perverse brand of Keynesian counter-cyclical stimulus: The economy might be on the ropes, but the federally guaranteed student loans
kept coming, as students who faced poor employment prospects looked to higher education.
Banks, like Simmons First National Bank of Pine Bluff, that had aggressively marketed federally guaranteed student loans
lost one revenue stream.
The administration is also mulling new requirements for private and federally guaranteed student loans
, giving the more than 40 million Americans with student loans additional "basic rights and protections."
(The extra month allows a borrower to be late on a payment and still qualify.) The rules apply only to federally guaranteed student loans
Mission Forsaken concludes with a call for the establishment of a "gainful education" standard to replace admission to an accredited institution as the qualification for the receipt of federally guaranteed student loans