Capping US student loans could boost ABS – DBRS

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, ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial