Author: Kate Webster

College Ave Secures Securitization at $161 million in Private Student Loans

Only three years after its inception, a major student loan marketplace lender, College Ave Student Loans, announced the completion of its first securitization of private student loans. The $161 million transaction got an ''A'' rating from DBRS and a ''BBB'' rating from S&P according to College Ave. The sole underwriter of the deal completed earlier in the summer was Barclays.Co-founder and CEO Joe DePaulo commented that he was very proud of the results of the company for its relatively short market presence. Moving forward, College Ave would try to issue asset-backed bond options on an annual basis given the...

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Navient Acquires Earnest for $155 Million

Jack Remondi, President and CEO of Navient, believes the Earnest acquisition will create "consumer-centric education credit products."Navient, one of the largest student loan servicers in the United States, has acquired online student loan lending company Earnest for $155 million in cash.The news was made public after Navient issued a press release detailing the acquisition.Jack Remondi, the President and CEO of Navient, offered the following statement for Navient’s press release: “Combining Earnest’s best-in-class data science, digital marketing, and technology with Navient’s industry and capital markets experience create an exciting platform to deliver value for consumers and investors. Together, we will...

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UK Graduates Overpaid Their Collective Student Debt by £50 Million in 2016

The HMRC regional office in Croydon, England. HMRC believes they "probably" could handle UK's student loan program alone. According to a report from The Times, roughly 86,000 college graduates from the United Kingdom collectively overpaid their student loan debt by £50 million in 2016.The Times obtained the data through a freedom of information request. In comparison to the 86,000 college graduates that paid more than necessary in 2016, approximately 52,000 former students overpaid in 2010.Additionally, The Times found that the average amount overpaid per student was £592. However, 260 college graduates overpaid an amount between £5,000 and £10,000.HM Revenue and...

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Brown University Promises to Eliminate Student Loans

The John Carter Brown Library at Brown University. The institution recently announced a plan to eliminate student loans.One of the most prestigious universities in the entire world, Brown University, has recently promised to eliminate student loans from any university undergraduate financial aid package.The news was announced via a press release issued by Brown University on September 20th, 2017.The Providence, Rhode Island-based Ivy League institution is promising to replace packaged student loans with grant funds that will not have to repaid. This removal of student loans from financial aid packages is anticipated to impact all of Brown’s 6,500 current undergraduate...

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Pennsylvania-Based Transworld Systems Ordered to Pay $2.5 Million As Part of Student Loan Debt Case

A recent ruling by the CFPB, above, ordered Transworld Systems to pay a $2.5 million civil penalty as part of a larger student debt case.The Pennsylvania-based Transworld Systems has been ordered by the Consumer Financial Protection Bureau (CFPB) to pay a $2.5 million civil penalty as part of a larger student loan-related case involving National Collegiate Student Loan Trusts.The news was announced yesterday by the CFPB in a press release issued on their website.In the same case, the CFPB has ordered National Collegiate Student Loan Trusts to pay a minimum of $19.1 million for filing illegal student loan debt...

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