Does anyone know about the status of ASFG loans? I have heard people here speak of Genesis Loans, but not ASFG. According to the Harkin Commission, ASFG had rates as high as 17.9%...http://www.help.senate.gov/imo/media/for_profit_report/PartII/Corinthian.pdf...."
Corinthian partnered with anothe
r third party lender, ASFG, in
June of 2011 to arrange a more
complicated loan program.
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Corinthian was clear about the reas
ons for entering into the transaction;
the company told investors: “the ASFG arrange
ment helped us meet our 90/10 requirement of
generating at least 10 percent of re
venue from non-title IV sources.”
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The arrangement called for
$450 million to lend to Corinthian students over 2 year
s. According to ASFG’s
Web site, their loans
carry an interest rate of 11.9 to 17.9
percent, nearly three a
nd a half times the current Federal subsidized
interest rate of 3.4 percent.
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Corinthian is obligated to purch
ase every loan on which no payment has
been made for 90 days."