Hints and tips:
...FFELP-backed bonds are a declining subset of the student loan universe, with about $170bn still outstanding, after the government ended the FFELP programme in 2010 in favour of direct lending....
...The FFELP deal is not so bad for investors in the loans....
...able to sell securities backed by private student loans, which aren’t guaranteed by the federal government, as well as older federally backed student loans known as Federal Family Education Loan Program (FFELP...
...Loans under FFELP could be packaged into ABS....
...A recent research note by Credit Suisse noted that since the abolition of the Federal Family Education Loan Program (FFELP) in 2010, the government has become owner of an estimated 88% of total outstanding...
...FFELP was a federally-guaranteed student loan scheme used by three-quarters of US colleges....
...These include transactions defeased by US Treasury strips, transactions backed by FFELP government guaranteed student loans, and US RMBS backed by government agency mortgages....
...being discontinued, refinancing will lead to new FFELP securitizations and we expect 2011 issuance volume to be similar to that of 2010 at roughly $14 billion....
International Edition