Even though the student loan industry has undergone dramatic consolidation in the last year and has lost several frequent issuers, overall volume could again reach the $22 billion mark in 2001, according to a new research report published this week by the international rating agency Fitch.

"Many investors will add student loan asset-backed securities to their portfolios for the first time, whether the new-found interest comes from student loan ABS credit quality, additional structural innovations, or the amendment of federal pension plan legislation," said Claire J. Mezzanotte, Managing Director, Fitch. "All the while, the same factors that triggered an unprecedented 51% increase in student loan asset-backed securitization volume last year will still be in play."

In addition to detailing the student loan asset-backed securities market, the new Fitch report summarizes recent trends in student financial aid and post secondary education. The report also includes commentary on Federal Family Education Loan Program (FFELP) credit quality, industry consolidation, current and future regulatory issues, and the change in the Administration.