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STUDENT LOAN FUNDING INCREASES FUTURE LOAN ACQUISITION CAPACITY BY NEARLY $1 BILLION

 CINCINNATI, Aug. 25 /PRNewswire/ -- Cincinnati-based Student Loan Funding recently closed on an innovative bond issue that increases its capital capacity by nearly $1 billion, positioning it well to meet the future funding needs of college students throughout Ohio and the Midwest.
 The bond issue, announced today by Thomas L. Conlan, Jr., president and CEO, will help fund Student Loan Funding's continuing business of acquiring student loans from lending institutions in the secondary market.
 While many of Student Loan Funding's recent bond issues provided funding to buy a specific pool of loans, the proceeds from this issue are designated for future loan acquisitions. "The tax-exempt bonds which make up this $100 million issue are subordinated revenue bonds issued by The Student Loan Funding Corporation," explained Mark J. Weadick, chief financial officer. "These bonds will allow Student Loan Funding to issue $700 to $900 million of securities in the future which will be senior to the Corporation's bonds."
 This structure is designed to maximize the tax-exempt funding authority granted to The Student Loan Funding Corporation by the Ohio Department of Development, while also using the tax-exempt bonds as a credit enhancement for future taxable issues. "Our future ability to issue up to $900 million in taxable securities provides important assurances to students and families that the private sector will continue to be there to fund student loans and educational opportunity," said Weadick.
 Student Loan Funding closed the $100 million bond issue just days after Congress agreed to a compromise on President Clinton's proposal to replace the current student loan program with federal direct lending.
 Modeled after legislation passed by the U.S. Senate, the compromise plan tests and evaluates the direct government lending plan by limiting phase-in to a maximum of 60 percent of total federal student loan volume in five years and establishing an advisory committee to oversee the program.
 Under this compromise plan, Student Loan Funding will remain financially viable and views the changing environment of the student loan industry as a unique opportunity. "We anticipate significant demand for our services as a result of the legislative reforms that put the current public-private partnership in competition with the federal government to provide student loan capital and quality student borrower services," Conlan said.
 Student Loan Funding is comprised of The Student Loan Funding Corporation and SLFC, Inc., two nonprofit organizations dedicated to making funds available to help students who need financial assistance for college. In partnership with 283 lending institutions, Student Loan Funding has provided more than $1.47 billion in loan funds to more than 223,000 students since 1983.
 The Student Loan Funding Corporation is Ohio's designated nonprofit secondary market for federally guaranteed student loans. SLFC, Inc. was established in 1991 to provide secondary market services for other privately guaranteed education loan programs. As of June 30, 1993, the combined assets of The Student Loan Funding Corporation and SLFC, Inc. are $1.3 billion.
 -0- 8/25/93
 /CONTACT: Julie York of Dan Pinger Public Relations, 513-751-6161,


or after hours, 513-861-5469, for The Student Loan Funding Corporation/

CO: The Student Loan Funding Corporation ST: Ohio IN: FIN SU:

SM -- CL011 -- 0410 08/25/93 14:31 EDT
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Publication:PR Newswire
Date:Aug 25, 1993
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