debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
Sallie Mae rumored to issue bonds backed by student loans in the near future
By Peggy Stillwell on Aug 20th, 2010
Sallie Mae, one of the country's largest lenders, may issue $760.4 million in bonds backed by student loans, according to Bloomberg. The loans carry a government guarantee and Bank of America is rumored to be managing the sale by the government-operated company. The news is not official, however, a source close to Sallie Mae says that the deal will be announced soon.
Bloomberg reports that debt tied to household borrowing, including education loans and credit card debt, benefits from limited issuance. Sales of securities backed by loans are at $63.8 billion, compared with $115.8 billion at this time last year, according to information provided by Bank of America.
Student loans, specifically, are now managed by the federal government under new legislation. Sallie Mae was bought out by the government after being accused of predatory lending and collapsing in the 2008 recession. Now that the middle man has been cut out, borrowers can make direct payments to the government and repay their debt in accordance to their income.
Those struggling to pay off their loans could consider debt consolidation. Taking out a smaller loan with a lower interest rate can reduce monthly payments.
More General Debt News
- 12-13-2010
- Credit card charge offs fell in October
- 10-08-2010
- Bankruptcy filings back on the upswing
