Silverbird
Well-known member
updated 11:46 a.m. ET, Thurs., April. 17, 2008
WASHINGTON - Sallie Mae, the largest U.S. student loan company, on Thursday affirmed its 2008 profit forecast, but warned of a “train wreck” in the $85 billion education financing market without urgent government intervention.
The company said it still expected “core” earnings of $1.70 to $1.80 a share for the year.
But Chief Executive Al Lord told analysts on a conference call: “We’ve been predicting something of a train wreck” in mid-2008 without prompt changes in a market hit by fallout from the subprime mortgage crisis and cuts last year in federal subsidies to student lenders.
As a result, Lord said Sallie Mae’s new loans for the most part would lose money.....
On the conference call, Lord said Sallie was being flooded with loan applications from students, reflecting the exit of dozens of other lenders from the business....
http://www.msnbc.msn.com/id/24167304/
