Moody's: Slow loan repayment rates will continue to affect FFELP ABS in 2016

New York, December 15, 2015 -- Repayment rates on collateral in asset-backed securities (ABS) backed by Federal Family Education Loan Program (FFELP) loans will remain low in 2016, Moody's Investors Service says in its just-published outlook for FFELP ABS. The combined percentage of FFELP loans in deferment, forbearance and Income-Based Repayment (IBR) will remain high, while voluntary prepayments will rise slightly. At the same time, a further strengthening in the job market for young college graduates, combined with continued high IBR usage, will lead to lower defaults in FFELP loan pools.

Vollständigen Artikel bei Moodys lesen