A position the Internal Revenue Service is taking regarding $150 million of student-loan revenue bonds under audit could have ramifications for the entire tax-exempt student loan bond industry, market participants said last week.

The Pennsylvania Higher Education Assistance Agency disclosed late Thursday that the IRS disagreed with its stance regarding its reallocation of student loans to various bond issues, as well as its treatment of consolidation loan rebate fees as a qualified administrative expense. The issues arose in an audit of bonds issued in 2002, according to a material event notice filed with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system.

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