Monday, December 28, 2009

Student Lenders Rise On Hopes Fedl Loan Program Will Survive

NEW YORK (Dow Jones)--Shares of student lenders jumped Wednesday after an analyst suggested that the industry may not immediately be pushed out of the federal loan origination business, a prospect many had feared for months.

"Although still an uphill battle, the survival of the FFELP program, we believe, is a real possibility," FBR Capital Markets analyst Matt Snowling wrote in a note to investors, referring to the Federal Family Education Loan Program, which allows private lenders to originate government-backed loans for college students. The Obama administration had proposed a plan to ...


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