Anyone watching STU The Student Loan Corp? Down almost half it's value today.

Student Loan Corp 2Q net falls 40%; loss reserves balloon
By Kevin Kingsbury
Last update: 9:48 a.m. EDT July 18, 2008


Net income fell to $42 million, or $2.10 a share, compared with $70.5 million, or $3.53 a share, a year earlier. Loan-loss provisions surged to $45.8 million from the first quarter's $25.3 million and last year's $3.9 million, mostly due to the higher-risk and uninsured CitiAssist portfolio.
Besides the increased loan-loss reserves, the quarter's results were hurt by a $29 million drop in gains on securitized loans. Conversely, net interest income rose 16% as the net interest margin - the difference it receives in interest versus what it pays - rose 0.15 percentage point to 1.89%.
Chief Executive Mike Reardon said, "The student-loan industry is still contending with a challenging business environment." As such the company moved to areas "that best enable us to grow profitably while thoughtfully deploying capital."


http://www.marketwatch.com/news/story/student-loan-corp-2q-net/story.aspx?guid={FACFE5A4-B4EF-4E76-B6AF-7EF0795F2271}&dist=TQP_Mod_mktwN

http://www.marketwatch.com/Quotes/stu

...will result in our student loans being forgiven?

That would certainly be music to my ears.

They will try to restructure them at a loss make them profitable and sell them back to the private sector at some future time. The idea is when they pull the bad loans out of packages the sell of the good loans will offset the losses taken on the bad loans which when restructured can be sold at a later date when the credit market is more willing to buy them.