TERI To Enter Student Loan Collection Business

Law360, New York (December 17, 2008, 12:00 AM EST) -- A bankruptcy judge cleared the way Tuesday for The Education Resources Institute Inc. to enter into agreements with two banks under which the bankrupt private education loans guarantor will launch a collection business for student loans in default.

The company will enter into agreements with PNC Bank NA and Sovereign Bank, according to orders issued in the U.S. Bankruptcy Court for the District of Massachusetts. In exchange, TERI will be paid by being entitled to retain a percentage of the monies it recovers on defaulted loans....
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