Sallie Boss Warns Of Student Loan 'Train Wreck' (Associated Press)
"Sallie Mae says it cannot write money-losing student loans indefinitely," the Associated Press reports. "Top executives are holding 'daily deliberations' about just how long the nation's largest student lender can afford to sacrifice its bottom line for the sake of college-bound Americans. Experts said that, unless the government intervenes or market conditions rapidly improve, Sallie Mae could have no choice but to stop writing new federally backed loans. Sallie Mae lost $104 million in the first quarter as it grappled with higher borrowing costs, restructuring charges and other factors, though Lord said in a conference call with analysts that the company would not lower its full-year earnings target."
You can read the complete April 17, 2008 Associated Press article on-line.
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