Overheard Consumer Bankers Association | June 6–8, 2010, Hollywood, FL
GenX is America’s 13th generation. Of them, 3 out of 5 want to someday start their own business and be their own boss. | Neil Howe,Demographer, historian and economist
With endowments losing half their value, even the best schools are forced into lender programs. | Joe Kakaty, Chief Marketing Officer, College Loan Corporation
AUDIENCE POLL: The U.S. economy 59% say government regulation will be significant during the next 2 years.
FFEL student loan assets continue to trade at prices below par value, creating an opportunity to pick up government guaranteed paper for those in a position to do so. There are lots of businesses and portfolios for sale. | Mark Weadick, Managing Director, Student Loan Capital Strategies
Schools are negligent by not telling families that tuition discounts are only guaranteed for the freshman year. | Steven Clemente, Executive Director, Peterson’s
AUDIENCE POLL: The U.S. economy 44% say that creditworthi- ness is the biggest obstacle to increased lending.
There is great reputational risk for student lenders who work with for-profit schools even when the economic risk is mitigated. | Thomas Lustig, President, PNC Educational Lending, PNC Bank
If you have Millenial children or you work with them, you
know...they’re all ‘special.’ | Neil Howe, Demographer, historian and economist
Upcoming accountability regulation of 4-year for-profit education will deal with the ROI question without mentioning ROI. | Steven Clemente, Executive Director, Peterson’s
Student loan stats at the conference More than 70 percent of private loans issued in 2010 are expected to be co-signed. In 2010 private loans will be issued to borrowers whose average FICO scores exceed 700 and comakers whose average scores exceed 735. Source: DBRS
When the government sets student loan interest rates they’re always too high or too low. The private market should set the rates based on educational outcomes, and do so on a by-school and by-major basis. | Richard George, CEO, Great Lakes Higher Education Loan Services
Fifty percent of families say they are absolutely reliant on getting scholarship aid to finance their son or daughter’s education. But 92 percent of families who apply for scholarships never see any scholarship dollars. | Steven Clemente, Executive Director, Peterson’s
There is recognition that school certification is essential to avoid overborrowing. | John Hupalo, Managing Director, Ramirez Capital Advisors
Student lending is too complex. There are more trick ponies than any counselor can present to borrowers and get it right. | Richard George, CEO, Great Lakes Higher Education Loan Services
In actuality, sending your kid to a community college adds a year and a half to the eventual graduation date and costs more. | Steven Clemente, Executive Director, Peterson’s
I predict 75 percent of schools will have preferred lender lists within a year....up from 40% now. | Joe Kakaty, Chief Marketing Officer, College Loan Corporation
85% of the default portfolio is the result of “non-persisting” students [dropouts], of which 99% could have been eliminated. It’s cheaper to give someone a grant than a student loan that must be collected later. | Richard George, CEO, Great Lakes Higher Education Loan Services
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