Online Education

Sallie Mae “Off Point Excuses”

Today - these loans are not profitable due to costs of funds. When pricing normalizes, those loans will be profitable again. Should SLM focus on the more profitable schools, yes - they and others are doing so. Howev, in the long run, low cost providers of student loans like StudentLoanNetwork.com will continue to gain market share with the highest margins.

First Marblehead Won't Be Left Holding The Loan Bag

FMD has booked gains on future earnings from the securitizations it has managed. Those gains may or may not be realized going forward. People do need to be aware that future defaults and/or pre-payments are a consideration.

Also, there are also concerns about how the federal government will restrain private student lenders going forward. For example, pending legislation will require additional disclosures before students agree to take the loans FMD's partners are offering.

FMD is a great company and private student loans are increasingly in demand.

Why First Marblehead Can Survive Without Bank of America, JPMorgan

As competition grows, won't margins decline even more dramatically than projected here?

Why First Marblehead Can Survive Without Bank of America, JPMorgan

Is it likely that FMD's Astrive brand will grow 1,000% over the next 5 years? Do you have anything to base this on?