Student loan provider reports steep fall in profits
on Monday,January 26,2009 22:01
One of the biggest providers of student financing has released a report which blames market volatility for its bleak year-end results.
The Student Loan Corporation revealed that its net income for the quarter ended December 31, 2008 was 73% lower than a year ago. The company''s net income for the year declined 58% compared to the year ended December 31, 2007.
The company''s statement suggested that the results stemmed from the disruption and lack of liquidity in the financial markets, and that its operations have been deeply affected as a result.
In December 2008, SLC had to borrow $1 billion through the Department of Education''s Loan Participation Purchase Program under The Ensuring Continued Access to Student Loans Act of 2008.
According to the company''s CEO Mike Reardon, "Accessing this liquidity is helping to provide us with the resources to fulfill our commitment to build a better future by providing unparalleled solutions that enable students and their families to finance the education of their choice."
The Student Loan Corporation originates, holds and services federally insured student loans through a trust agreement with Citibank, N.A. which owns 80% of the Student Loan Corporations outstanding common stock.
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