Recent Developments in Student Loan Finance

The last few years have seen interesting trends and developments in financing student loans in the debt capital markets (and equity markets to some extent). As the inventory of federally insured student loans in private hands continues to dwindle and private student loans continue to emerge as the more visible part of the student loan landscape, new players and old standbys have orchestrated a variety of financings, both short term and long term, to support their businesses in the education finance industry. This article surveys the current state of play for financing student loan assets, with particular attention to efforts to comply with risk retention rules and other regulatory requirements. TOPICS:Fixed income and structured finance, legal/regulatory/public policy