As a result, FEMA has only been able to make partialpayments to many who are legally entitled to full claim payments, giving rise to the need for the additional money.
Because of rising loan amounts and interest rates, a worrisome trend has emerged: Loans where the borrower can make only partialpayments or has gotten a delay are up to 6.4% from 4.7% a year ago. (Borrowers start repaying after graduation.) Meanwhile, Sallie Mae has suffered earnings reversals, mainly from fumbled derivatives, which have pulled the stock down a tad.
The message was that they would be purposefully limited in aim, and that the core of any programme would be a debtor-led partial default - that is, the suspension of interest payments on the remaining debt and a repudiation of the terms of both Troika-brokered bailouts.