Student Loan Crisis Worsens
The Student Loan Corp (STU) and Sallie Mae Corp (SLM) have both been in the news these past few days with announcements related to lending and money losses on federally guaranteed student loans. Student loan Corp on Wednesday announced that it will be suspending lending at certain schools and will withdraw from the Federal Consolidation Loan market due to market turmoil and federal legislation. Sallie Mae’s top executives are reportedly engaged in daily discussions as to how long the company can continue losing money on federally guaranteed student loans.