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Sallie Mae Buyout in Abeyance


Oct 3, 2007
Buying Sallie Mae, the biggest lender in the business, may have seemed like a great idea at first, but doubts have been creeping up. A group of investors that includes J.C. Flowers & Company, Bank of America, JP Morgan Chase, and Friedman Fleischer & Lowe initially offered $25 billion for Sallie Mae, but has recently retracted the offer blaming new legislation for the decision. The College Cost Reduction and Access Act signed by President Bush last week entails, among other things, government cuts on subsidies given to student lenders. Over the next five years, about $21 billion would be cut from lender support and invested in student aid programs. J.C. Flowers & Company stated that their decision abides by contract rules and that such legislation was considered when the [...]
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110 months ago 0 comments

After an anxious wait on the part of students and lenders, President Bush finally signed the College Cost Reduction and Access Act into law. And you know this is big if MTV reported on the bill even though partying at club Les Deux wasn’t involved. According to the new law, the maximum Pell Grant offered to students will increase while the subsidies the government offers student lenders will [...]

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President Bush is certainly keeping students waiting. Graduates debating loan consolidation and lenders pressuring them to go through with it are standing by to see if the Congress-approved College Cost Reduction Act will finally be signed by the president. If the bill is passed, the government will cut lender subsidies by October 1st. The savings will then be used to increase Pell Grants to [...]

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After what seemed like a never-ending battle between the Senate and the House, a compromise was finally reached on the College Cost Reduction and Access Act. What’s more, based on White House reports, President Bush is even going to retract his earlier threat to veto the bill. The proposal was sent to the president on Friday, and a signature is expected shortly. The main points of the bill [...]

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When it comes to loans, this is the real deal. The Perkins Loan program is a government and school funded program with the smallest interest rates, only 5%. Compared to other low-interest government loans and their high-interest private counterparts, the Perkins Loans are ideal for students who need on-the-spot funds. Of course, the best of loans are not available to all. [...]

112 months ago 0 comments Read More