Lender Reactions To Department Plan Positive, For Now

Abstract: A lot has happened in three days. On Monday, unnamed Sallie Mae officials were threatening to exit the FFEL program. On Tuesday, Department of Education officials presented their plan to leaders of the lending community in a closed-door meeting about how to infuse liquidity in the student loan market. Yesterday, the Department officially released some of the details of that plan in a Dear Colleague Letter outlining how they would provide liquidity to FFELP lenders. Shortly thereafter, in an open Webcast, Sallie Mae said they were staying in the program, for now.

The full article was originally published on 05/22/08 in NASFAA’s Today’s News.