Weekly Market Update
TOUGHER BORROWER DEFENSE RULE
Thursday, January 11, 2018
The Department of Education is working on an overhaul of a federal student loan provision known as borrower defense to repayment. The Department is proposing a higher burden of proof for loan forgiveness, requiring students to provide "clear and convincing" evidence that their institutions intended to mislead or engaged in misconduct. Details on what constitutes sufficient evidence remain unclear. This tougher standard, if approved, would take effect in July 2019. While some student advocates worry that few students would qualify under the new rules, most colleges welcome the proposed standard.
In Other News
- President of the University of Illinois system, Timothy L. Killeen, has proposed an in-state tuition freeze to retain in-state students and prevent further enrollment decline.
- The Woodruff Foundation pledged $400 million to Emory University--the largest gift in the University's history--to find new treatments for diseases and to enhance health care.
- Scion Group paid about $1 billion to purchase 22 public university student housing properties from Harrison Street Real Estate Capital, making Scion the third-largest student housing owner in the United States.
- The University of Pennsylvania Health System acquired Princeton HealthCare System, expanding its outpatient care.
- The yield on the benchmark ten-year U.S. Treasury reached 2.55% on Tuesday, the highest level since March. Bill Gross has declared a bear bond market due to excess debt supply.
- Ten West Virginia higher education institutions formed the Alliance for the Economic Development of Southern West Virginia on Monday, which seeks to support workforce training and revitalize local communities.
Rating Agency Update
- Moody's assigned Aa3 to the University of Idaho's Series 2018A General Revenue Refunding Bonds. The outlook is stable.
- Moody's assigned Aaa to the University of Michigan's Series 2018A General Revenue Bonds. The outlook is stable.
- Moody's assigned Aa2 to the University of Kentucky's Series 2018A General Receipts Bonds. The outlook is stable.
- Moody's assigned Aa2 to Clemson University's Series 2018A Athletic Facilities Revenue Bonds. The outlook is stable.
- S&P lowered Missouri Western State University's rating to BBB+ from A-. The outlook is stable.
- S&P assigned AAA to the University of Michigan's Series 2018A General Revenue Bonds. The outlook is stable.
- S&P assigned AA to the University of Kentucky's Series 2018A General Receipts Bonds. The outlook is stable.
- S&P lowered Loyola University New Orleans's rating to BBB from BBB+. The outlook is stable.
- S&P assigned A+ to Montana State University's Series 2018 Bonds. The outlook is stable.