Citigroup,Sells,Student,Loans, education Citigroup Sells Student Loans Subsidiary to Sallie Mae, Disc
Some forms of parent involvement with the school such as communications with school, volunteering, attending school events and parent--parent connections appeared to have little effect on student achievement, especially in high school. Helpi Translation jobs are undertaken by professional translators who are well versed with at least two languages.Translation can work at two levels: inter-state or regional language translation and inter-national or foreign language translation.
As part of the transaction, the U.S. Department of Educationalso purchased a piece of SLCs student loan portfolio, buying$4.7 billion in federally guaranteed student loans, and Citibankbought back approximately $8.7 billion in unguaranteed SLC assets forsale at a later date (CitiSubsidiary The Student Loan Corporation Sells Securitized FFELP Assets toSallie Mae, Citigroup press release, Sept. 17, 2010).SLC is 80-percent owned by Citibank, with publicshareholders owning the other 20 percent. SLC shareholders willreceive about $30 per share in the buyout, a 42-percent increase on the stocksclosing price on September 16.Prior to the sale, SLC was the second-largest servicer offederally guaranteed student loans behind Sallie Mae.Sallie Mae paid $1.2 billion to assume servicingresponsibility for $28 billion in securitized, federally guaranteedstudent loans, while Discover, which paid $600 million, will take overthe servicing of $4.2 billion in private student loans.Citigroup says it lost about $500 million in the deal after taxes,which it will report in its third-quarter earnings statement. The transactionsrequire regulatory and SLC shareholder approvals and are expected to close bythe end of 2010. Citi Ends Its Run as a Lender of Student LoansThe move means that Citigroup has officially exited both theprivate and federal student loan business. Citi, like other banks and privatelenders, had already been forced to stop originating new federal college loans.Under the Student Aid and Fiscal Responsibility Act, legislationincluded in the Obama administrations health care reconciliation bill and thatwent into effect on July 1, 2010, only the U.S. Department of Education mayissue new federally guaranteed student loans. through the governments studentloan program.Private lenders that were previously authorized to issuefederally backed college loans (including Stafford, PLUS, Grad PLUS, andfederal consolidation loans) under the third-party Federal Family EducationLoan Program (FFELP) are still allowed to service their existing federalstudent loan portfolios , however, and can buy and sell the servicing rights tothese government student loans among themselves. Sallie Mae and Discover to Become Bigger Playersin the Student Loan MarketOnce the Citi deal is complete, Sallie Mae will service aportfolio of federal parent and student loans worth around$200 billion. Already the largest servicer of federal student loans,Sallie Mae is also the largest originator and servicer of non-federal privatestudent loans, managing about $36 billion in private education loans.With the purchase of Citbanks federal student loans, SallieMae will take on about 1.3 million new customers. This opportunityfits well with our servicing scale and expertise, said Sallie Mae CEO AlbertLord. For its part, Discover gets a bigger share of the privatestudent loan servicing pie and what the company believes will be a competitiveentrée into the growing market for private student loans.The private student loan business is an important part ofDiscovers direct banking strategy, and this acquisition will enhance ourcompetitive position in private student loan originations, said David Nehms,Discovers chairman and CEO, in the companys press release.Private student loans comprise a growing percentage of theoverall student loan picture, as students look for more ways to cover theever-increasing cost of a college education. While federal student loanlegislation has closed one avenue for private lenders to issue student loans,the door is still open to private lenders who want to fill the wideningdifference between what students can borrow from Uncle Sam to cover collegeexpenses and rising college costs. Citigrouppress release on sale of The Student Loan Corp., student loans, Student Aid and Fiscal Responsibility Act
Citigroup,Sells,Student,Loans,