Student Loans - Goal Financial Acquires FFELP Student Loans

Goal Financial, which to date has originated over $9 billion worth of government guaranteed student loans issued to over 200,000 graduate and undergraduate students, recently announced the successful purchase of over $600,000 worth of Federal Government guaranteed student loans.  This is part of a new strategy by the company through which they plan to focus on acquiring Federal Family Education Loan (FFEL) loans.

The recent purchases were understood to have been made through three of Goal Financial’s existing securitization trusts, namely the Student Loan Consolidation Center Student Loan Trust (SLCC), the Education Loan Asset-Backed Trust (ELAB) and also Higher Education Funding (HEF).

Ken Ruggiero, the President of Goal Financial, commented on these recent purchases: “With this initial purchase completed, we are actively seeking larger portfolios of FFELP loans to acquire. The trusts have been retiring Auction Rate Securities at discounts to par for the past two years. This new program will offer an additional approach to maximizing returns in the trusts.” Another short statement regarding the recent transactions was also made by Seamus Garland, the Chief Financial Officer at Goal Financial “Our existing SLCC, ELAB, and HEF structures give us a unique funding capacity that will allow us to price the acquisition of FFELP loans aggressively relative to more traditional FFELP loan buyers.”