The CEO of Sallie Mae warned of a “train wreck” coming in the $85 billion education financing market without urgent government intervention according to an article on MSNBC.
Chief Executive Al Lord told investors on a conference call Thursday, that a market hit by a credit crunch and cuts last year in federal subsidies to student lenders is cause for concern. Conveiently, his remarks about the the state of the college loan industry came hours ahead of an expected vote on the floor of the U.S. House of Representatives on a bill which could help bail out the lending institutions.
A statistic to note in the conference call from Mr. Lord:
Demand for student loans at Sallie was running at $3 billion a month, while the company has only been able to access funding of about $1 billion a month.
Source: http://www.msnbc.msn.com/id/24167304/