Cfwh Holding Corp history

For the first time since 1968, the interest rate charged to student borrowers was raised, from 7 percent to 9 percent.

The company opened for business in 1973 with financing from Washington, D.C. banks, repaying these loans through the sale of federally-guaranteed securities the same year.

In 1976, the lender allowance was tied to the 90-day treasury bill rate, and its ceiling was raised from 3 percent to 5 percent.

In 1978 Congress also removed the ceiling on the special allowance to lenders, setting the allowance simply at 3.5 percent above the 90-day treasury bill rate, so that lenders were guaranteed a market rate of return.

The amendments of 1980 also established a new educational lending program called PLUS, for parents of dependent students.

In 1981, under the new Reagan administration, Congress reinstated a needs test for borrowers with a family income above $30,000.

Sallie Mae helped set up Connie Lee, which opened for business in 1988.

By 1991 Sallie Mae owned a third of the $49 billion market in outstanding guaranteed student loans.

In 1993, its stock was selling at a high of $74.50, but then began a slide, landing at almost half that price two years later.

But in 1995 Lord organized a slate of dissidents to run for seats on Sallie Mae's board.