Source Pravda.Ru

Student Loan Corp takes steps to survive economic crisis

The Student Loan Corp takes decisive steps in order to get through the difficult economical times.

First of all, Student Loan decided to hold up its lending at certain schools and leave the Federal Consolidation Loan field.

The decision is a reflection of certain turmoil around student loan availability this autumn.

The main concern lies in cut federal subsidies paid to lenders involved in the federally guaranteed student loan program. Congress now proposes a new legislation that will let the U.S. Department of Education buy student loans that lenders are unable to securitize and sell on the secondary market.

The Student Loan Corp reported that lending will be cut at schools where loans with lower balances and shorter interest-earning periods bring less profit.

The corporation also added that this action is temporary, till the situation on the market is somehow improved.