Tag Archives: Student loan

Fitch Gives 12 National Collegiate Student Loan Trust Transactions ‘Outlook Negative’ Ratings!

As you may or may not know National Collegiate Student Loans is American Education Services which is of course the Pennsylvania Higher Education Assistance Agency (PHEAA). All of the National Collegiate Trusts listed below can be found HERE PHEAA’s website and HERE the Irish Stock Exchange.

P.S. Despite Fitch and ‘National Collegiate’s’ assertion that the Loans held or rather owned by the National Collegiate Student Loan Trusts are Private Student Loans…they are NOT! The National Collegiate loans are FEDERAL FFELP LOANS that were FRAUDULENTLY CONSOLIDATED WITHOUT THE BORROWERS KNOWLEDGE OR CONSENT!

If you received federal student loans in 2003, 2004, 2005, 2006, or 2007 that were or are serviced by American Education Services (AES) then it may be worth your while to look into this!

NEW YORK–(BUSINESS WIRE)–Fitch Ratings has affirmed all ratings across 12 National Collegiate Student Loan Trust (NCSLT) transactions.

The affirmations reflect the stable loss coverage multiples of the trusts since Fitch’s last review on Jan. 29, 2010, which continue to reflect high default levels in excess of Fitch’s initial expectations.

In addition, Fitch removes from Rating Watch Negative and subsequently assigns Negative Rating Outlooks to NCSLT 2006-3 through 2007-2 to reflect Fitch’s overall view of the private student loan sector. The Outlook remains Negative on non-distressed ratings in NCSLT 2003-1 through 2006-2. These actions are based upon Fitch’s Global Structured Finance Criteria and U.S. Private Student Loan ABS Criteria.

For each trust, Fitch conducted a review of the collateral performance that involved the calculation of loss coverage multiples based on the most recent variables. A projected net loss amount was compared to available credit enhancement to determine the loss multiples. Fitch used historical vintage loss data provided by the issuer to form a loss timing curve representative of the private student loan collateral pools of each trust. After giving credit for seasoning of loans in repayment, Fitch applied the current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the remaining life for each trust. A recovery rate of 25% was applied, which assumes no further payments from TERI other than the funded pledge accounts.

The available credit enhancement for the trusts consists of excess spread, overcollateralization (if any), and subordination where applicable. Fitch assumed excess spread to be the lesser of the historical average excess spread (earning on the assets minus interest payments to bondholders and fees) and the most recent 12-month average excess spread, and applied that same rate over the remaining life. Given the high default forecasts relative to the remaining pool balance, the multiples were compressed to achieve through-the-cycle rating stability.

Fitch has affirmed the following classes:

National Collegiate Student Loan Trust 2003-1:
–Class A-6 at ‘BBBsf’; Outlook Negative;
–Class A-7 at ‘BBBsf’; Outlook Negative;
–Class A-IO at ‘BBBsf’; Outlook Negative;
–Class B-1 at ‘Csf’;
–Class B-2 at ‘Csf’.

National Collegiate Student Loan Trust 2004-1:
–Class A-2 at ‘BB+sf’; Outlook Negative;
–Class A-3 at ‘BB+sf’; Outlook Negative;
–Class A-4 at ‘BB+sf’; Outlook Negative;
–Class A-IO-2 at ‘BB+sf’; Outlook Negative;
–Class B-1 at ‘Csf’;
–Class B-2 at ‘Csf’.

National Collegiate Student Loan Trust 2004-2/NCF Grantor Trust 2004-2:
–Class A-3 at ‘BBB+sf’; Outlook Negative;
–Class A-4 at ‘BBB+sf’; Outlook Negative;
–Class A-5 1 at ‘BBB+sf’; Outlook Negative;
–Class A-5 2 at ‘BBB+sf; Outlook Negative;
–Class A-IO at ‘BBB+sf’; Outlook Negative;
–Class B at ‘BB+sf’; Outlook Negative;
Class C at ‘CCCsf’.

National Collegiate Student Loan Trust 2005-1/NCF Grantor Trust 2005-1:
–Class A-2 at ‘BBBsf’; Outlook Negative;
–Class A-3 at ‘BBBsf’; Outlook Negative;
–Class A-4 at ‘BBBsf’; Outlook Negative;
–Class A-5 1 at ‘BBBsf’; Outlook Negative;
–Class A-5 2 at ‘BBBsf’; Outlook Negative;
–Class B at ‘BB-sf’; Outlook Negative’;
–Class C at ‘CCsf‘.

National Collegiate Student Loan Trust 2005-2/NCF Grantor Trust 2005-2:
–Class A-2 at ‘BBB-sf’; Outlook Negative;
–Class A-3 at ‘BBB-sf’; Outlook Negative;
–Class A-4 at ‘BBB-‘sf; Outlook Negative;
–Class A-5-1 at ‘BBB-sf’; Outlook Negative;
–Class A-5-2 at ‘BBB-sf’; Outlook Negative;
–Class A-IO at ‘BBB-sf’; Outlook Negative;
–Class B at ‘B+sf’; Outlook Negative;
–Class C at ‘CCsf’.

National Collegiate Student Loan Trust 2005-3/NCF Grantor Trust 2005-3:
–Class A-2 at ‘BBB-sf’; Outlook Negative;
–Class A-3 at ‘BBB-sf’; Outlook Negative;
–Class A-4 at ‘BBB-sf’; Outlook Negative;
–Class A-5-1 at ‘BBB-sf’; Outlook Negative;
–Class A-5-2 at ‘BBB-sf’; Outlook Negative;
–Class A-IO-1 at ‘BBB-sf’; Outlook Negative;
–Class A-IO-2 at ‘BBB-sf’; Outlook Negative;
–Class B at ‘BB-sf’; Outlook Negative;
–Class C at to ‘CCsf’.

National Collegiate Student Loan Trust 2006-1:
–Class A-2 at ‘BB+sf’; Outlook Negative;
–Class A-3 at ‘BB+sf’; Outlook Negative;
–Class A-4 at ‘BB+sf’; Outlook Negative;
–Class A-5 at ‘BB+sf’; Outlook Negative;
–Class A-IO at ‘BB+sf’; Outlook Negative;
–Class B at ‘B+sf’; Outlook Negative;
–Class C at ‘CCsf’.

National Collegiate Student Loan Trust 2006-2:
Class A-1 at ‘BB-sf’; Outlook Negative;
–Class A-2 at ‘BB-sf’; Outlook Negative;
–Class A- at ‘BB-sf’; Outlook Negative;
–Class A-4 at ‘BB-sf’; Outlook Negative;
–Class A-IO at ‘BB-sf’; Outlook Negative;
–Class B at ‘CCCsf’;
–Class C at ‘CCsf’.

Fitch has removed from Rating Watch Negative, affirmed, and assigned Outlooks to the following classes as indicated:

National Collegiate Student Loan Trust 2006-3:
–Class A-2 at ‘BBB+sf’; Outlook Negative;
–Class A-3 at ‘BBB+sf’; Outlook Negative;
–Class A-4 at ‘BBB+sf’; Outlook Negative;
–Class A-5 at ‘BBB+sf’; Outlook Negative;
–Class A-IO at ‘BBB+sf’; Outlook Negative;
–Class B at ‘BB+sf’; Outlook Negative;
–Class C at ‘B+sf’; Outlook Negative;
–Class D at ‘CCCsf’.

National Collegiate Student Loan Trust 2006-4:
–Class A-1 at ‘BBBsf’; Outlook Negative;
–Class A-2 at ‘BBBsf’; Outlook Negative;
–Class A-3 at ‘BBBsf’; Outlook Negative;
–Class A-4 at ‘BBBsf’; Outlook Negative;
–Class A-IO at ‘BBBsf’; Outlook Negative;
–Class B at ‘BBsf’; Outlook Negative;
–Class C at ‘Bsf’; Outlook Negative;
–Class D at ‘CCsf’.

National Collegiate Student Loan Trust 2007-1:
–Class A-1 at ‘BBB-sf’; Outlook Negative;
–Class A-2 at ‘BBB-sf’; Outlook Negative;
–Class A-3 at ‘BBB-sf’; Outlook Negative;
–Class A-4 at ‘BBB-sf’; Outlook Negative;
–Class A-IO at ‘BBB-sf’; Outlook Negative;
–Class B at ‘BBsf’; Outlook Negative;
–Class C at ‘Bsf’; Outlook Negative;
–Class D at ‘CCsf’.

National Collegiate Student Loan Trust 2007-2:
–Class A-1 at ‘BBBsf’; Outlook Negative;
–Class A-2 at ‘BBBsf’; Outlook Negative;
–Class A-3 at ‘BBBsf’; Outlook Negative;
–Class A-4 at ‘BBBsf’; Outlook Negative;
–Class A-IO at ‘BBBsf’; Outlook Negative;
–Class B at ‘BBB-sf’; Outlook Negative;
–Class C at ‘BB-sf’; Outlook Negative;
–Class D at ‘CCCsf’.

Applicable Criteria and Related Research:

–‘Global Structured Finance Rating Criteria’, dated Aug. 13, 2010;
–‘U.S. Private Student Loan Criteria’, dated Aug. 24, 2009;
–‘Rating US Federal Family Education Loan Program Student Loan ABS’, dated April 11, 2008;
–‘Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria’, dated June 29, 2010;
–‘Fitch to Gauge Basis Risk in Auction-Rate U.S. FFELP SLABS Review’, dated Sept. 22, 2010.

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=463174
Rating US Federal Family Education Loan Program Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=382306

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE.

Contacts

Fitch Ratings
Primary Analyst
Emily Lee, +1-212-908-0667
Director
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Cynthia Ullrich, +1-212-908-0609
Senior Director
or
Media Relations:
Brian Bertsch, New York, +1-212-908-0549
brian.bertsch@fitchratings.com

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Filed under 9.5 percent, 9.5 percent SAP, American Education Services, federal direct loans, federal financial aid, FFELP, for-profit colleges, for-profit schools, fraud, higher education, muni bond fraud, muni bond probe, municipal bonds, PHEAA, PLUS, Stafford, student loan lenders, student loan program, student loan scandal, student loans, Uncategorized

STUDENT LOAN FRAUD ALERT: Fitch Downgrades and Withdraws Ratings on Education Loans Inc., Indenture Trusts

Wells Fargo in Laredo, Texas, is located near ...

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FYI Education Loans Inc. is ClassNotes Inc. it is also Wachovia Education Finance and they are all now Wells Fargo Education. For those students currently serving a debt life sentence at the WACHOVIA or WELLS FARGO STUDENT LOAN DEBT PRISON it may be worth your time to investigate this further. My gut says that someone found SERIOUS FRAUD in these trusts!

NEW YORK–(BUSINESS WIRE)–Fitch Ratings takes the rating actions described below on Education Loans Inc.’s Student Loan Trusts 1999-1, 2004-1 & 2004-C&D and withdraws all ratings. For these trusts, all ratings of senior and subordinate bonds are downgraded as indicated below except for one tranche which was recently affirmed. In addition, ratings on Education Loans Inc.’s Student Loan Trust 1998-1 and 2005-1 are being withdrawn.

Fitch used its ‘Global Structured Finance Rating Criteria’, ‘U.S. Private SL ABS Criteria’ and ‘FFELP Student Loan ABS Rating Criteria’, as well as the refined basis risk criteria outlined in Fitch’s Sept. 22, 2010 press release ‘Fitch to Gauge Basis Risk in Auction-Rate U.S. FFELP SLABS Review’ to review the ratings.

Each of the 1999-1, 2004-1, 2004-C&D transactions are under significant pressure as losses continue to accumulate at rates above Fitch’s expectations. The trusts are undercollateralized and exhibiting a downward parity trend, particularly for the 2004-C&D and 1999-1 trusts. The trusts are also under pressure due to the high cost associated with the failed auction-rate securities, not allowing the trusts to accumulate asset to build parity.

Fitch is withdrawing all of its ratings assigned to Education Loans Inc.’s Student Loan Trusts following the issuer’s decision to redeem subordinate bonds in the 2004-1 transaction with trust funds, an action which appears to be in breach of the provisions of the trust documents. In addition, the issuer has indicated that it has applied cash from 1999-1 trust accounts to make a payment related to a lawsuit.

These actions took place in late 2009 and during this year and Fitch only became aware of them in recent conversations with the issuer as part of its surveillance review process. These actions were not contemplated in Fitch’s rating analysis and Fitch has determined that it can no longer maintain accurate ratings as a result of such actions.

For the portion of the trusts mentioned above that is backed by private loans, Fitch conducted a review of the collateral performance that involved the calculation of loss coverage multiples based on the most recent data provided by the issuer. A projected remaining net loss amount was compared to available credit enhancement to determine the loss multiples. Fitch derived the expected lifetime net loss based on the projected lifetime net default for each repayment year. Fitch then applied the current cumulative net loss level to determine the expected net loss over the remaining life for the trust. In addition, Fitch applied the most recent 12-month average excess spread rate over the remaining life. Basis risk stresses were also applied to account for the risk associated with the auction-rate securities. The ratings prior to the withdrawal are commensurate with the loss coverage multiples calculated.

Fitch has taken the following rating actions:

Education Loans Inc, – 1998-1 Indenture Trust:

–Class 1D withdrawn;
–Class 1F 6/1/20 withdrawn;
–Class 1H withdrawn;
–Class 1K withdrawn.

Education Loans Inc, – 1999-1 Indenture Trust:

Series 1999-1
–Class A downgraded to ‘BBsf’ from ‘Asf’; withdrawn;
Class C downgraded to ‘CCCsf’ from ‘Bsf’; withdrawn.

Series 2001-1
–Class A downgraded to ‘BBsf’ from ‘Asf’; withdrawn;
–Class B downgraded to ‘BBsf’ from ‘Asf’; withdrawn;
–Class C downgraded to ‘CCCsf’ from ‘Bsf’; withdrawn.

Series 2002-1
–Class A downgraded to ‘BBsf’ from ‘Asf’; withdrawn;
–Class B downgraded to ‘BBsf’ from ‘Asf’; withdrawn;
–Class C downgraded to ‘CCCsf’ from ‘Bsf’; withdrawn.

Series 2003-1
–Class B downgraded to ‘BBsf’ from ‘Asf’; withdrawn;
–Class C downgraded to ‘BBsf’ from ‘Asf’; withdrawn;
–Class D downgraded to ‘CCCsf’ from ‘Bsf’; withdrawn.

Education Loans Inc, – 2004-1 Indenture Trust:

–Class A1 downgraded to ‘BBBsf’ from ‘AAsf’; withdrawn;
–Class A3 downgraded to ‘BBBsf’ from ‘AAsf’; withdrawn;
Class A4 downgraded to ‘BBBsf’ from ‘AAsf’; withdrawn;
–Class B1 affirmed at ‘Bsf’; withdrawn.

Education Loans Inc, – 2004-C&D Indenture Trust:

–Class C1 downgraded to ‘BBB-sf’ from ‘AA-sf’; withdrawn;
–Class C2 downgraded to ‘BBB-sf’ from ‘AA-sf’; withdrawn;
–Class C5 downgraded to ‘BBB-sf’ from ‘AA-sf’; withdrawn;
–Class D downgraded to ‘CCCsf’ from ‘Bsf’; withdrawn.

Education Loans Inc, – 2005-1 Indenture Trust:

–Class A3 withdrawn;
–Class B withdrawn.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

–‘Global Structured Finance Rating Criteria’ dated Aug. 13, 2010;
–‘U.S. Private Student Loan Criteria dated Aug. 24, 2009;
–‘Rating US Federal Family Education Loan Program Student Loan ABS’, dated April 11, 2008;
–‘Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria’ dated June 29, 2010;
–‘Fitch to Gauge Basis Risk in Auction-Rate U.S. FFELP SLABS Review’, dated Sept. 22, 2010.

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=463174
Rating US Federal Family Education Loan Program Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=382306

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE.

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UPDATE AND CORRECTION: The List Keeps Growing:The Student Loan Industry’s DIRTY Secret

A special purpose entity (SPE; or, especially in Europe, special purpose vehicle/SPV, in Ireland – FVC financial vehicle corporation) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives. SPEs are typically used by companies to isolate the firm from financial risk. A company will transfer assets to the SPE for management or use the SPE to finance a large project thereby achieving a narrow set of goals without putting the entire firm at risk. SPEs are also commonly used in complex financings to separate different layers of equity infusion. In addition, they are commonly used to own a single asset and associated permits and contract rights (such as an apartment building or a power plant), to allow for easier transfer of that asset. Moreover, they are an integral part of public private partnerships common throughout Europe which rely on a project finance type structure-WIKIPEDIA

IF THIS REMINDS YOU OF THE HOUSING BUBBLE I.E. THE STOREFRONT ,MORTGAGE LENDERS THEN YOU’RE BEGINNING TO UNDERSTAND WHAT’S GOING ON AND WHY YOU’RE DEBT KEEPS GROWING AND GROWING AND GROWING AND GROWING!

Banks partnered with student loan guaranty agencies, student loan servicers, and other banks to create student loan brokerage firms aka student loan special purpose entities the majority of which were incorporated in State of Florida. For example, Student Loan Xpress, Goal Financial, K2 Financial, Education Finance Partners, US Education Finance etc. Kinda like the storefront mortgage companies and unlicensed brokers, think Enron’s LJM2, the Raptors, Chewco etc

The bank ffelp lenders, servicers and guaranty agencies used the student loan brokerage companies to access and repeatedly access students’ personal information, nslds, and credit reports for what they claimed were Marketing or Promotional Purposes. If you don’t believe me then just check your credit reports from 2006-2008. I bet you’ll have 3 ‘Promotional Purpose’ pages that are all student loan companies. Unfortunately, they weren’t accessing your reports for marketing purposes as they claimed. They were accessing the reports for your personal information which they unlawfully used to originate federal consolidation loans.

The Education Department’s Office of Inspector General found that American Education Services/Pennsylvania Higher Education Assistance Authority  (CLICK THE LINK I PROMISE IT’S WORTH IT!) received about $33 million in overpayments — and possibly much more — under an exemption in federal law that allowed lenders that financed the student loans they issued using tax-exempt bonds issued before 1993 to earn a government subsidized interest rate of 9.5 percent. Congress engaged in several aborted attempts to fully close the loophole throughout the 1990s and the early part of this decade, but some lenders continued to find ways to take advantage of it by recycling the pre-1993 loan funds, before Congress, as part of the Higher Education Reconciliation Act, finally closed it permanently last year.

Guess how they did it? You guessed it, by partnering with lenders to create student loan brokerage firms, special purpose entities and special purpose vehicles that unlawfully used your personal information to create federal consolidation loans. The lenders then used the fraudulent consolidations loans to replace loans that defeased, were repaid or discharged in their 9.5 percent floor loan securitized trusts and student loan revenue bonds. Consequently, because the federal consolidation loans were unlawfully created by the student loan brokerage firms (lenders + servicers + guaranty agencies) theft of your personal information they are not valid obligations; thus they are not enforceable! So, in protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day pull your NSLDS report highlight that fraudulent loan, complete an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification discharge form, and send it to fraudnet@gao.gov!

Don’t forget to name your lender, servicer, and guaranty agency on the discharge form and attach your NSLDS report with showing the fraudulent consolidation loan you never applied for or agreed to!

So without further ado here are a few of the Student Loan Special Purpose Entities that you should LOOK FOR ON YOUR CREDIT REPORTS. Please note this list is a daily work in progress and by no means complete:

National Collegiate Trust/                                                         PHEAA/American Education Services

American Educational Loan Services                               PHEAA/American Education Services


MRU HOLDINGS:                                                                             J.P. Morgan Chase, Key Bank, Morgan Stanley,

                                                                                                                       Lehman Bros, Assured Guaranty,

                                                                                                                        Global Securitization Service, LLC,

 Sallie Mae
J.P. Morgan Chase,

Bank of America,

J.C. Flowers & Co.,

Friedman Fleischer & Lowe.

First National Wachovia
First Savings Wachovia
Affinity Direct d/b/a Educational Direct Citibank Student Loans
Credit Card Protection Bain Capital Ventures

Bain Private Equity

CORTRUST Bank Citibank
Academic Funding Foundation Educaid/

Wachovia/

Class Notes Inc

Erie Processing Corp Wachovia
Xanthus Higher Education ABN AMRO
Student Loan Processors US Bank
K2 Financial Ceigis LLC

ACS-Education

Discover

University Financial Lenders Bank of New York
Educational Lending Group Citibank
Post Collegiate Financial First American Title Ins.

Wachovia

Federal Family Education Wachovia Securities
Goal Financial Cit Group/Bank of New York
American Educational Loan Processing PHEAA/

American Education Services

Student Loan Xpress Bank of Lake Mills,

Citibank,

AMACAR,

HedgeForum Renaissance

Education Finance Partners

Education Finance Partners ACS Inc
PHEAA/American Education Services Citibank

Wachovia

Academic Finance Corporation ACS/

US Bank

Amerifund Education Corporation ACS/

Fifth Third/

RBC Bank/

US Bank

Ardent Financial, LLC/NSL Direct Citibank
US Education Finance PHEAA/

AES,

ACS,

Citibank,

Wachovia

Academic Financial Services ACS
Acapita Education Finance Corporation ACS/

US Bank

AMS Education ACS/

Bank One/

Sallie Mae

Fleet National Bank

Student Capital Corporation ACS/

Deutsch/

Bank of New York/

P Morgan Chase/

Citibank

Studentloans.com ACS/

Brazos/

Wells Fargo

Bosque HEA AES/

Wells Fargo Bank/

ACS

Pecos Student Finacnial Corp AES/

US Bank

us Education Finance Corporation AES
US Contracting Corp PHEAA/

AES

American Educational Services PHEAA/

AES

Education Funding Resources Cit Group
Education Lending Group Cit Group
Education Finance Partners ACS/

Cit GROUP/

HedgeForum Renaissance

Wachovia

AMACAR

Grad Partners Student Loan Xpress/

Education Lending Group

Cit Group


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Filed under 9.5 percent, 9.5 percent SAP, American Education Services, federal direct loans, federal financial aid, FFELP, for-profit colleges, for-profit schools, fraud, higher education, muni bond fraud, muni bond probe, municipal bonds, PHEAA, PLUS, Stafford, student loan lenders, student loan program, student loan scandal, student loans, Uncategorized

STUDENT LOANS

UNITED WE STAND, DIVIDED WE FALL! In protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day!Apply for an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification loan discharge  The nearly $1 trillion dollar student loan debt, the $1500/month interest only payment, the double in some cases almost triple outstanding principle amount owing, etc. is due to the following:

Bank FFELP lenders partnered with loan guaranty agencies and student loan servicers to create student loan brokerage firms aka special purpose entities the majority of which were incorporated in State of Florida. For example, Student Loan Xpress, Goal Financial, K2 Financial, Education Finance Partners, US Education Finance etc. Kinda like the storefront mortgage companies and unlicensed brokers, think Enron’s LJM2, the Raptors, Chewco etc .  The bank ffelp lenders, servicers and guaranty agencies used the student loan brokerage companies to access and repeatedly access students’ personal information, nslds, and credit reports for what they claimed were Marketing or Promotional Purposes. If you don’t believe me then just check your credit reports from 2006-2008. I bet you’ll have 3 ‘Promotional Purpose’ pages that are all student loan companies.

Unfortunately, they weren’t accessing your reports for marketing purposes as they claimed. They were accessing the reports for your personal information which they unlawfully used to originate federal consolidation loans. The consolidation loans were then purchased by student loan servicers/guaranty agencies from lenders on the Federal Family Education Loan Program secondary market.  The servicers/guaranty agencies issued tax-exempt bonds to obtain funds to acquire loans.  Billions of such bonds issued prior to October 1, 1993, were outstanding.  The servicers/guaranty agencies  bills the U.S. Department of Education for 9.5 percent special allowance payments on the loans it purchases, holds, and services.  

For example, in April 2003, Nelnet implemented a process (“Project 950”) to increase the amount of its loans receiving special allowance [taxpayer subsidy payments] under the 9.5 percent floor. . . . Nelnet repeated this process many times, increasing the amount of loans it billed under the 9.5 percent floor from about $551 million in March 2003 to about $3.66 billion in June 2004. PHEAA did it too! Guess how they did it? You guessed it, by partnering with lenders to create student loan brokerage firms, special purpose entities and special purpose vehicles that unlawfully used your personal information to create federal consolidation loans. The lenders then used the fraudulent consolidations loans to replace loans that defeased, were repaid or discharged in their 9.5 percent floor loan securitized trusts and student loan revenue bonds. Consequently, because the federal consolidation loans were unlawfully created by the student loan brokerage firms (lenders + servicers + guaranty agencies) theft of your personal information they are not valid obligations; thus they are not enforceable! So, in protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day pull your NSLDS report highlight that fraudulent loan, complete an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification discharge form, and send it to fraudnet@gao.gov!

Don’t forget to name your lender, servicer, and guaranty agency on the discharge form and attach your NSLDS report with showing the fraudulent consolidation loan you never applied for or agreed to!

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Filed under 9.5 percent, 9.5 percent SAP, federal direct loans, FFELP, for-profit colleges, for-profit schools, PLUS, Stafford, student loan lenders, student loan program, student loan scandal, student loans, Uncategorized

STUDENT LOAN DEBT PROTEST!

UNITED WE STAND, DIVIDED WE FALL! In protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day!Apply for an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification loan discharge  The nearly $1 trillion dollar student loan debt, the $1500/month interest only payment, the double in some cases almost triple outstanding principle amount owing, etc. is due to the following:

Bank FFELP lenders partnered with loan guaranty agencies and student loan servicers to create student loan brokerage firms aka special purpose entities the majority of which were incorporated in State of Florida. For example, Student Loan Xpress, Goal Financial, K2 Financial, Education Finance Partners, US Education Finance etc. Kinda like the storefront mortgage companies and unlicensed brokers, think Enron’s LJM2, the Raptors, Chewco etc .  The bank ffelp lenders, servicers and guaranty agencies used the student loan brokerage companies to access and repeatedly access students’ personal information, nslds, and credit reports for what they claimed were Marketing or Promotional Purposes. If you don’t believe me then just check your credit reports from 2006-2008. I bet you’ll have 3 ‘Promotional Purpose’ pages that are all student loan companies.

Unfortunately, they weren’t accessing your reports for marketing purposes as they claimed. They were accessing the reports for your personal information which they unlawfully used to originate federal consolidation loans. The consolidation loans were then purchased by student loan servicers/guaranty agencies from lenders on the Federal Family Education Loan Program secondary market.  The servicers/guaranty agencies issued tax-exempt bonds to obtain funds to acquire loans.  Billions of such bonds issued prior to October 1, 1993, were outstanding.  The servicers/guaranty agencies  bills the U.S. Department of Education for 9.5 percent special allowance payments on the loans it purchases, holds, and services.  

For example, in April 2003, Nelnet implemented a process (“Project 950”) to increase the amount of its loans receiving special allowance [taxpayer subsidy payments] under the 9.5 percent floor. . . . Nelnet repeated this process many times, increasing the amount of loans it billed under the 9.5 percent floor from about $551 million in March 2003 to about $3.66 billion in June 2004. PHEAA did it too! Guess how they did it? You guessed it, by partnering with lenders to create student loan brokerage firms, special purpose entities and special purpose vehicles that unlawfully used your personal information to create federal consolidation loans. The lenders then used the fraudulent consolidations loans to replace loans that defeased, were repaid or discharged in their 9.5 percent floor loan securitized trusts and student loan revenue bonds. Consequently, because the federal consolidation loans were unlawfully created by the student loan brokerage firms (lenders + servicers + guaranty agencies) theft of your personal information they are not valid obligations; thus they are not enforceable! So, in protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day pull your NSLDS report highlight that fraudulent loan, complete an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification discharge form, and send it to fraudnet@gao.gov!

Don’t forget to name your lender, servicer, and guaranty agency on the discharge form and attach your NSLDS report with showing the fraudulent consolidation loan you never applied for or agreed to!

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Fitch Rates SLC Student Loan Trust: The Student Loan Bubble is Beginning to LEAK!

FYI an OUTLOOK NEGATIVE RATING USUALLY MEANS THEY DISCOVERED FRAUDULENT LOANS IN THE TRUST 
April 28, 2011 02:47 PM Eastern Daylight Time

Fitch Affirms Ratings on SLC Private Student Loan Trust 2006-A

NEW YORK–(BUSINESS WIRE)–Fitch Ratings has affirmed ratings on the Student Loan Corporation (SLC) Private Student Loan Trust 2006-A senior class A, subordinate class B and junior subordinate class C notes issued by the Student Loan Corporation. The Rating Outlook remains Negative. Fitch’s Global Structured Finance Rating Criteria and Private Student Loan Asset-Backed Securities (ABS) Criteria were used to review the transaction. The rating actions are detailed at the end of this press release.

The calculated loss coverage multiples for the class A, class B and class C notes are sufficient to maintain the current ratings. The Outlook remains Negative because of Fitch’s negative view of the private student loan sector in general.

The rating affirmations are based on a loss coverage multiples commensurate with the notes’ current assigned ratings and are based on the collateral performance data as of March 31, 2011. A loss coverage multiple was determined by comparing projected net loss amount to available credit enhancement. Fitch used historical vintage loss data provided by SLC to form a loss timing curve representative of the series 2006-A collateral pool. After giving credit for seasoning of loans in repayment, Fitch applied the trust’s current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the projected remaining life. A recovery rate was applied, which was determined to be appropriate based on the latest data provided by the issuer.

Credit enhancement consists of excess spread, a reserve fund, overcollateralization and subordination. Fitch assumed excess spread to be the lesser of the average historical excess spread (earnings on the assets minus interest payments to bondholders and fees) and the most recent 12-month average excess spread, and applied that same rate over the stressed projection of remaining life.

The collateral supporting the SLC Private Student Loan Trust 2006-A note consists entirely of private student. The private student loans are intended to assist individuals in financing their undergraduate or graduate education beyond what the FFELP affords. The private loans are available to students enrolled in or recently graduated from graduate-level certificate or degree programs. Loan proceeds are used by students to finance a portion of the costs of attending law school, medical school, dental school, graduate business school, and other graduate schools, as well as preparing for and taking state bar examinations or participating in a medical residency program.

As of December 31, 2010, Discover Financial Services acquired SLC and its servicing operations for private student loans. SLC, a wholly owned subsidiary of Discover Financial Services, will continue to act as the primary servicer and administrator for the trust and Citibank (South Dakota) National Association will continue to act as sub-servicer.

Fitch affirms the SLC Private Student Loan Trust 2006-A notes as follows:

–Senior class A-4 affirmed at ‘AAAsf’; Outlook Negative;
–Senior class A-5 affirmed at ‘AAAsf’; Outlook Negative;
–Subordinate class B affirmed at ‘AAsf’; Outlook Negative.
–Junior Subordinate class C affirmed at ‘Asf’; Outlook Negative.

Senior class A-3 notes have been paid in full.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:
–‘U.S. Private Student Loan ABS Criteria’ (Aug. 24, 2009);
–‘Global Structured Finance Rating Criteria’ (Aug. 16, 2010).

Applicable Criteria and Related Research:
U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=463174
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE.

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Student Securities! You and Your Student Loans Belong to an Investor!

Mortgage Backed Security

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MUST READ Article @ N+1: Bad Education that fully explains Student Loan Asset Backed Securities;  why you’re loan balance is growing every month despite your payments and; why lenders prefer delinquent borrowers and borrowers who default over borrowers who pay on time.

“What kind of incentives motivate lenders to continue awarding six-figure sums to teenagers facing both the worst youth unemployment rate in decades and an increasingly competitive global workforce?

During the expansion of the housing bubble, lenders felt protected because they could repackage risky loans as mortgage-backed securities, which sold briskly to a pious market that believed housing prices could only increase. By combining slices of regionally diverse loans and theoretically spreading the risk of default, lenders were able to convince independent rating agencies that the resulting financial products were safe bets. They weren’t. But since this wouldn’t be America if you couldn’t monetize your children’s futures, the education sector still has its equivalent: the Student Loan Asset-Backed Security (or, as they’re known in the industry, SLABS).

SLABS were invented by then-semi-public Sallie Mae in the early ’90s, and their trading grew as part of the larger asset-backed security wave that peaked in 2007. In 1990, there were $75.6 million of these securities in circulation; at their apex, the total stood at $2.67 trillion. The number of SLABS traded on the market grew from $200,000  in 1991 to near $250 billion by the fourth quarter of 2010…..

Even with the Treasury no longer acting as co-signer on private loans, the flow of SLABS won’t end any time soon. What analysts at Barclays Capital wrote of the securities in 2006 still rings true: “For this sector, we expect sustainable growth in new issuance volume as the growth in education costs continues to outpace increases in family incomes, grants, and federal loans.” The loans and costs are caught in the kind of dangerous loop that occurs when lending becomes both profitable and seemingly risk-free: high and increasing college costs mean students need to take out more loans, more loans mean more securities lenders can package and sell, more selling means lenders can offer more loans with the capital they raise, which means colleges can continue to raise costs. The result is over $800 billion in outstanding student debt, over 30 percent of it securitized, and the federal government directly or indirectly on the hook for almost all of it.

If this sounds familiar, it probably should, and the parallels with the pre-crisis housing market don’t end there……”

Read the rest of the article at NPLUSONE MAG

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