DBC® Student Loancommercial paper, lines of credit for loan purchases and letter of credit...

DBC® Student Loan

DBC Student Loan is the most widely used modeling and structuring program for the structuring and cashflow analysis of student loan revenue bonds. DBC Student Loan is used for valuing and surveillance of portfolios, structuring new issues, securitization modeling, and credit analysis.

Key Benefits• Market-provensoftwareproducesreliableresults.

• Frequentupdatesmeansyoukeepcurrentwithindustryinnovations.

• Ourexperiencedsupportteamprovidespromptassistancetoyourstaff.

Key Features• Sizesandstructuresbondissuesbasedonneedstofundloans,reservefunds,andexpenses.

• Modelsassets,liabilities,investmentsandtheflowoffundstoprojectforwardcashflows

• Batchprocessesunlimited“what-if”scenarioswithdifferentassumptionssuchasprepaymentmethods,loanassumptionsorloanoriginations.

• Runsallthetestsrequiredbyissuers,bondcounsel,insurersandratingagenciesincludingyieldanalysisandCAB-remaindersensitivitytestsatonetime.

• Generateseasy-to-readreportswithmultiplefrequenciesanddetaillevelswhichprovideafullaudittrailofallcalculations.

Loans• SupportsallFELPloansincludingStafford,Consolidation,PLUSandSLSloans.

• ModelsgraduateschoolloanssuchasMedLoans,LawAccessLoans,MBAAccessLoans,HealthEducationAssistanceLoansandTERIloans.

• Supportsmostalternativeloanprograms.

• HandlesfullorpartialreimbursementforFederally-insuredloans.

• Handlesannual-resetloantypeswithindex-basedrateformulas.

• Modelsdefermentsandforbearancesfully.Negativeamortizationsupportedfornon-subsidizedloans,deferralsandforbearances.

• Forecastsdefaultsandsetsrecovery/reimbursementlags

• Definespaymentlags,delinquencies,CPRandSMMprepayments.

• Recyclesloanreceiptsorexcessinterestintonewloans.

• ManagesSAPandIn-SchoolInterestsubsidy

• Modelsloandefaultsand‘rainy-day’reservefunds.

• Chooseoneoftheper-unitorpercentagebasedservicingcoststhatareincludedforallmajorstudentloanservicersorspecifyanytypeofloanservicingfeeschemeforeachportfolio.

• Supportsinterestratereductions(borrowerincentives)foron-timeanddirectdebtborrowers.

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The Industry Standard

Debt Structures • Easilyaccommodatesmultipledeliverydates,distinctinterestpaymentormaturityfrequencies,andoverlappingmaturities.

• Structuresfloatingandfixedratedebt,Dutch-auctionbonds,taxablediscountcommercialpaper,linesofcreditforloanpurchasesandletterofcreditfacilities.

• Setsupacommercialpaperwarehousingfacility.

• Performstax-exemptbondandloanyieldcalculationsandarbitragerebateliabilityestimates.

• Modelsseniorlienbondswithtwotiersofsubordinateddebt.

• Createsmultiplebondredemptionschemes.

• Redeemsbondsusingvariousmethodsincludingsequential,pro-rata,ortargetedwithPAC/TACschedules.

• Prioritizeseachmaturityinauser-definedcallhierarchy.

• Allocatesredemptionmoniesbyratioorpercentageoftheentireissueorgroupsofselectedmaturities.

• Runscleanupcalls.

• Modelsunlimitedprogramexpensessuchasadministrationfees,remarketingfees,bondinsurance,lettersofcredit,ratingagencies,costofissuanceandunderwriter’sdiscount.

• Loanprice/yieldtoolcreatesreportsthatsummarizetheyieldeffectsofpurchasepriceandABI.

• DiscountorIRRanycalculatedcashflow.

• DiscountmargintablesandBloomberg-compatibleABSreporting.

DBC Student Loan Template Manager • Createsalibraryofstandardizedstudentloaninputassumptionstosaveentrytimeandreduceerrors.

• Definesuptothirteentemplatetypes:interestratemechanism,SAP,interiminterestoptions,borrowerratereductioneligibility,default/losscurves,defermentandforbearance,paymentlags,delinquency,servicingfees,prepaymentsandloansales,loanforgivenessandvaluationforparitycalculations.

• Automaticallypopulatestheloanportfolioinputscreensandcreatesstressscenarios.

• Processesallstresstestssimultaneously.

• Referencesanynumberofdifferenttemplatesinadeal.

• Usesuniversaltemplatefileswithanyissuerorseries.

DBC Student Loan Consolidation• Producescombinedcashflowsforaproposednewissue/securitizationwiththeoutstandingbondissues/securitizationsthatareonparitywiththenewissue.

• Simultaneouslymodelsmultipleseries,assetsandliabilities,andproducesaggregatereports.

• Usessurplusesfromoneseriestoreplenishreservefundsorotherdeficienciesinanyotherseries.

• Usessurplusestore-originateadditionalloans,callbonds,investinreservesorbedistributedtotheissuer.

• Directssurplusesand/orloanprincipalreceiptstocross-callbondsofanotherseriesintheindenture.Cross-callingmethodsincludetransferstospecificallytargetedseriesorhighestcouponcallsamonganyseriesthataresubjecttoacross-calloption.

• Applyindenture-levelreservefundsandprogramexpensestoanyselectionofseries-levelcomponents.

• Runconsolidatedcashflowsformultipleissueswithinamastertrust.

DBC® Student Loan

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