Student Loan Advisory Services
SCM assists higher education clients with student loan related projects. We have provided advice and assistance to Schools As Lenders by advising on student loan bond issuance, running the RFP process for SAL lending partners and preferred lender lists, negotiating terms of loan purchase agreements, and providing ongoing market intelligence and updates. Services include:
Student Loan Bond Advisory Services
Help Assemble Working Group (as needed)
- Underwriters
- Liquidity Providers
- Attorneys
- Rating Agencies
- Swap Counterparties
Strategy and Structuring
- Develop long-term issuance strategy that addresses debt mode, tenor, and issuance timing
- Review structural alternatives for each issuance within context of overall strategy
- Optimize capital structure
- Orchestrate rating agency discussions
Cash Flow Projections and Assumptions
- Analyze structural efficiency with regard to rating agency assumptions, underwriter assumptions and optimization
- Interpret underwriter cash flows and clarify issuers' understanding of key points
- Provide DBC modeling as needed for sensitivity analysis and/or alternative structures
Bond Documentation Review
- Master Trust Indenture and any supplemental indentures
- Loan Agreement
- Reimbursement Agreement
- Remarketing Agreement
- Paying Agent Agreement
- Official Statement
- Rating Agency Pre-sale Reports
Bond Sale
- Seek/review private placement opportunities
- Negotiate or bid derivatives agreements, if appropriate
- Work with underwriters in public sale
- Assist with closing
Student Loan Purchase Agreement RFP Related Services
Preparation
- Review background information, history, and existing documentation
- Assess existing premiums and borrower benefits
- Produce a price yield table
- Draft a Request for Proposals (RFP) for lending partners, determine eligible pool of participants, and send RFP to eligible participants
Review, Analyze, Award
- Collect and review all proposals
- Analyze results, normalize for any differences, and rank
- Review all proposals and analysis with client
- Assist in resolving any final negotiation points and any other details regarding award of agreement
- Assist in documentation of new agreement
- Prepare a written report summarizing the changes and describing the outcome of the negotiation
- Assist with or make presentation to staff and students
Other Student Loan Services
Services Included under Annual Retainer
- Provide financial market updates
- ABS and municipal markets
- Student loan securitizations
- Secondary market activity
- Provide lender performance and viability updates both Title IV and private student loans
- Discuss availability of student loan funding including what others are doing and make recommendations to ensure access to both Title IV and private student loans
- Determine market readiness for SAL and availability of lender partners
- Provide legislative updates
- Create periodic presentations that summarize above points and review:
- SAL program implications
- Broad student loan funding considerations
- Strategies for addressing concerns