Monday, July 11, 2011

Nelnet buys residual interest in federal student loan (Reuters)

(Reuters) ? Nelnet (NNI.N) said it bought a residual interest in $1.9 billion of federal student loan from an affiliate of Greystone & Co Inc.

The student finance company acquired the interest in notes issued by GCO Student Loan Interest Margin Securities Trust-I (GCO SLIMS Trust-1), giving the company rights to the residual interest in GCO Education Loan Funding Trust-I.

The company expects the purchase to add immediately to base net income.

Nelnet said the loans and debt within the trusts will increase its student loan portfolio to more than $25 billion.

(Reporting by Anil D'Silva; Editing by Don Sebastian)

Source: http://us.rd.yahoo.com/dailynews/rss/business/*http%3A//news.yahoo.com/s/nm/20110711/bs_nm/us_nelnet

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