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Sallie Mae

Page history last edited by PBworks 15 years, 8 months ago

Sallie Mae

 

see also: student loan , bank loans

 

Sallie Mae, the largest U.S. student loan company, has agreed to be bought by two private-investment funds along with JPMorgan Chase and Bank of America for $25 billion, it said Monday. Deal between giant student loan company, private-investment funds, JPMorgan Chase and Bank of America comes amid intense scrutiny into student-lending industry.

 

If you have a student loan ,there is a good chance it is through Sallie Mae and their 142 billion dollar portfolio. Sallie Mae will be taken private by Bank of America, JP Morgan, and a few private equity firms.

 

 

SLM Corporation NYSE: SLM, commonly known as Sallie Mae, is the United States' largest college student loan company, managing more than $126.9 billion in debt for more than 10 million borrowers, and employing 12,000 individuals at offices nationwide.

 

The company primarily provides federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP) and offers resources to assist students, parents, and guidance professionals with the financial aid process

 

 

History

 

History

 

The Student Loan Marketing Association was originally created in 1972 as a government-sponsored enterprise (GSE) and began privatizing its operations in 1997, a process it completed at the end of 2004 when Congress terminated its Federal charter, ending its ties to the government. The company remains the country's largest originator of federally insured student loans. Through its specialized subsidiaries and divisions, Sallie Mae also provides debt management services as well as business and technical products to a range of business clients, including colleges, universities and loan guarantors.

 

In August 2006, Sallie Mae acquired Upromise, a company which provides rebates to buyers of certain brands, which can be applied to college savings accounts. Sallie Mae and Upromise plan to market comprehensive financial packages to parents and students, including investment plans, financial aid information, and student loans.

 

On April 16, 2007, Sallie Mae announced that an investor group led by J.C. Flowers & Co. signed an agreement to purchase Sallie Mae for approximately $25 billion (USD). When the transaction is complete, J.C. Flowers along with private-equity firm Friedman Fleischer & Lowe will own 50.2 percent of Sallie Mae, and Bank of America and JPMorgan Chase each will own 24.9 percent. Sallie Mae will cease to be a publicly traded company.

 

 

Controversies

 

In February, 2007, New York Attorney General Andrew Cuomo launched an investigation into alleged deceptive lending practices by student loan providers, including The College Board, EduCap, Nelnet, Citibank, and Sallie Mae.5 On April 11, 2007, Cuomo ended his investigation of Sallie Mae and announced that Sallie Mae had voluntarily agreed to change its lending standards to satisfy a new code of conduct for student loan practices established by Cuomo and donate $2 million (USD) to a fund devoted to educating college bound students about their loan options.

 

Many Internet sites document problems with Sallie Mae customer service and repeated, multiple telephone calls each day, even to people who aren't Sallie Mae borrowers or co-signers. Sallie Mae is extremely aggressive in its collection procedures.

 

 

Links

*Wikipedia article

*SallieMae.com

*The Sallie Mae Fund

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