Capping US student loans could boost ABS – DBRS

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By Sasha Padbidri
13 Dec 2017

The Promoting Real Opportunity, Success and Prosperity through Education Reform (Prosper) Act, which proposes capping federally guaranteed student loans and removing loan forgiveness from income-based repayment (IBR) plans, could benefit lenders and increase student loan ABS volume, said DBRS in a midweek research note.

The bill, which was proposed by congresswoman Virginia Foxx (R-NC), has been approved by the House Committee on Education and the Workforce, passing by a vote of 23 to 17, according to a December 13 statement by the committee.

“Today, Americans carry more than $1tr in student debt. Somehow, ...

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