Some of the nation’s universities are trying to sell chunks of their portfolios privately as their endowments swoon with the markets...
Every month, about 18,000 people reach an important milestone on the road to personal financial recovery. Having previously defaulted on their student loans — because of lost jobs, chronically poor health or, yes, sometimes less sympathetic reasons — they have gotten their acts together and consistently made on-time payments such that their loans are deemed ready for "rehabilitation." Once a new lender buys such a borrower’s loan, his or her credit record is wiped clean, as if the default never happened. Here’s the rub: The country’s current economic mess has obliterated the market in which banks or other investors buy existing student loans, and while the U.S. Education and Treasury Departments have taken several steps to buttress that market, what they’ve done so far has not included rehabilitated loans. And as of Friday, Suntrust — the lone lender that has been buying up nearly rehabilitated loans from the guarantee agencies (and the government) that hold them — will no longer do so, which would leave borrowers who qualify for rehabilitation starting in December without a means of getting back into good graces...
The University of California at Berkeley tripled the number of international students it admitted in this year's freshman class and plans to enroll even more students from outside the state next year, in part to pump up tuition revenue during a difficult financial period for the state's universities... (paid subscription required)