Tuesday, June 15, 2010

Fitch weighs in on student loan servicers

Fitch Ratings said Wednesday consolidation among student loan servicers will not have a material effect on the performance of securities backed by student loans or their investment ratings.

The ratings agency said industry consolidation is expected because of changes in the recently enacted health care legislation, which included a provision to end the Federal Family Education Loan Program.

Starting July 1, all federal student loans will be provided directly by the federal government through the Direct Loan Program.



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