from AP, via MSNBC:
Sallie boss warns of student loan ‘train wreck’House OKs measure to get more money to struggling lender
updated 7:14 p.m. ET, Thurs., April. 17, 2008
WASHINGTON - Sallie Mae says it cannot write money-losing student loans indefinitely.
Top executives are holding “daily deliberations” about just how long the nation’s largest student lender can afford to sacrifice its bottom line for the sake of college-bound Americans, Sallie Mae CEO Albert J. Lord said Thursday.
Lord told analysts on an earlier conference call: “We’ve been predicting something of a train wreck” in mid-2008 without prompt changes in a market hit by fallout from the subprime mortgage crisis and cuts last year in federal subsidies to student lenders.
Experts said that, unless the government intervenes or market conditions rapidly improve, Sallie Mae could have no choice but to stop writing new federally backed loans.
House lawmakers on Thursday approved a measure to boost the availability of credit for Sallie Mae and other student lenders, and analysts believe the Treasury department could act as soon as next week. ......(more)
THe complete piece is at:
http://www.msnbc.msn.com/id/24167304 /