SLM CEO: Dept Of Education CP Facility Could Start In 10 Days
23 Abril 2009 - 8:19AM
Noticias Dow Jones
A federal program, key to SLM Corp.'s (SLM) funding plan, is
slated to kick off within the next 10 days, said Chief Executive
Albert Lord.
The U.S. Department of Education's asset-backed commercial paper
facility would allow the student loan company to fund as much as
$16 billion of federal student loans, said Lord, during a
conference call Thursday to discuss SLM's first-quarter
results.
Commonly known as Sallie Mae, the shares of the largest U.S.
student-loan company recently traded at $4.90, up 6.5%, in
premarket trading. The stock has lost 48% of its value so far this
year.
Sallie Mae makes private and federal student loans. The company
reported a first-quarter net loss of $21.1 million, or 10 cents a
share, compared with a year-earlier loss of $103.8 million, or 28
cents.
The latest results included $203 million for private education
loan losses and charge-offs of $139 million of private education
loans during the quarter.
Analysts polled by Thomson Reuters expected per-share earnings
of 12 cents.
Total interest income dropped 34% to $1.24 billion amid a
discrepancy in borrowing rates in the commercial paper market and a
key short-term interest rate benchmark.
Sallie Mae originated $6.6 billion in loans, up 10% from a year
ago. Private education loans dropped 40% to $1.5 billion, due to
tightening of underwriting standards and the elimination of
non-traditional private loan originations.
The company increased its loan-loss provision by 82% to $250.3
million.
-By Aparajita Saha-Bubna, Dow Jones Newswires; 617-654-6729;
aparajita.saha-bubna@dowjones.com
(John Kell contributed to this report.)