BOSTON--(BUSINESS WIRE)--The Education Resources Institute (“TERI”), the oldest and largest non-profit guarantor of private education loans in the country, announced today that it filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Massachusetts.
This action became necessary as the nation’s ongoing credit woes continue to cause unprecedented volatility in the student loan market and immense hardships on loan-related companies. Mounting difficulties in financing the securitization of private education loans, along with a rise in borrower defaults and delinquencies brought on by a slow economy, have adversely impacted TERI’s liquidity.
Under the protection of Chapter 11, TERI, while it restructures, expects to continue its operations and initiatives that promote college access and success. The portions of TERI’s activities that are grant and foundation-funded will not be affected by the filing.
“TERI made this difficult decision to allow us to refine our loan guarantee business while ensuring that we continue to provide high quality college access and assistance programs to underserved individuals seeking guidance,” said Willis J. Hulings III, TERI President and CEO. “Chapter 11 will provide us with the time and opportunity to determine how best to provide our programs and services for the long term in this challenging economy. We will be working with our partners and lenders to minimize disruptions to student loan borrowers.”
TERI has retained Goodwin Procter LLP as legal counsel and Grant Thornton LLP as advisors to the organization.
For further information regarding TERI’s Chapter 11 case, visit the organization’s website at www.teri.org. Media inquiries should be directed to Beth Bresnahan, Rasky Baerlein Strategic Communications, 617-312-9013.
TERI (The Education Resources Institute), a nonprofit organization in Boston, Massachusetts, was founded in 1985 and promotes educational opportunities for all through its college access and loan guarantee activities.
TERI’s loan guarantee programs help students close the gap between education costs and their other resources such as financial aid, savings and family support. TERI is the oldest and largest guarantor of private (non-government) student loans with more than $17 billion in outstanding guarantees. TERI brings together lenders, schools, students and families to make available low-cost, high quality financing for postsecondary education. TERI is a national leader in promoting strategies for improving college access. The company manages college access programs that target low-income individuals and those who are the first generation in their families to attend college. These programs raise student and adult aspirations to include college and other post-secondary education, provide guidance and information directly to students and their families on planning and paying for college, and support increased student achievement in middle and high schools. TERI is also the director of the Pathways to College Network, an alliance of over 30 nonprofit organizations and funders committed to advancing college access and success for underserved students.