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Sallie Mae

SLM Corporation
Sallie Mae
Formerly called
Student Loan Marketing Association
Public, originally Government-sponsored enterprise
Traded as NASDAQ: SLM S&P 500
Industry Financial services
Founded 1972
Headquarters Newark, Delaware, U.S.
Key people
  • Raymond J. Quinlan (CEO)
  • Steven J. McGarry (CFO)
  • Laurent Lutz (General Counsel)
  • Jeffrey Dale (Chief Risk Officer)
  • Charlie Rocha (Chief Marketing Officer)
  • US$334 million (2013)
  • US$417 million (2013)[1]
  • (2014)[1]
  • US$578 million (2014)
  • US$462 million (2013)
Total assets
  • US$12.97 billion (2014)
  • US$10.71 billion (2013)
Total equity
  • US$1.8 billion (2014)
  • US$1.2 billion (2013)
Website .comsalliemae

SLM Corporation (commonly known as Sallie Mae; originally the Student Loan Marketing Association) is a publicly traded U.S.[2] corporation that at present (2015) provides consumer banking. Its nature has changed dramatically since it was set up in 1973. At first, it was a government entity that serviced federal educational loans. It then became private and started offering private student loans, although at one point it had a contract to service federal loans.

The company's primary business is originating, servicing, and collecting private education loans. The company also provides college savings tools such as its Upromise Rewards business and online planning for college tools and resources. Sallie Mae was previously originated federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP).[3] and also worked as a servicer and collector of federal student loans on behalf of the Department of Education. The company now offers private education loans and manages more than $12.97 billion in assets. Sallie Mae employs 1,400 individuals at offices across the U.S.[4][5]

On April 30, 2014, Sallie Mae spun off its loan servicing operation and most of its loan portfolio into a separate, publicly traded entity called Navient Corporation. Navient is the largest servicer of federal student loans and also acts as a collector on behalf of the Department of Education.


  • History 1
  • Corporate information 2
  • Corporate board 3
  • Social responsibility 4
  • Controversies 5
  • Subsidiaries 6
  • See also 7
  • References 8
  • Further reading 9
  • External links 10


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.

1973: The Student Loan Marketing Association (nicknamed “Sallie Mae”) opens its doors as a Government-Sponsored Enterprise (GSE). It is designed to support the guaranteed student loan program created by the Higher Education Act of 1965.

1975: First shareholder meeting is held. First loan is purchased from 1st Pennsylvania Bank.

1978: Board authorizes in-house loan servicing operations.

1979: Total assets exceed $1 billion.

1984: Sallie Mae shares publicly traded on the New York Stock Exchange under ticker symbol SLM.

1992: Sallie Mae creates The Sallie Mae Fund. Over the next two decades, the Fund will contribute more than $125 million to increase access to higher education and to support local communities.

1994: William D. Ford Direct Student Loan Program enacted into law. Clinton Administration announces that Sallie Mae should restructure itself from a GSE to a private company.

1997: Shareholders approve privatization of Sallie Mae.

2004: Sallie Mae is fully privatized, four years ahead of schedule.

2006: Sallie Mae becomes the nation's leading saving-for-college company with the acquisition of Upromise® and Upromise Investments®.[6]

On April 16, 2007, Sallie Mae announced that an investor group led by

  • SallieMae Careers
  • The Sallie Mae Fund
  • Be Debt Savvy
  • Upromise
  • 2Futuro

External links

  • Schemo, Diana Jean (June 10, 2007). "Private Loans Deepen a Crisis in Student Debt". The New York Times. 
  • "College, Inc.". PBS  
  • Bigda, Carolyn (February 16, 2015). "What You Need To Know About Private Student Loan". Chicago Tribune. 
  • Mulholland, Sarah (February 25, 2014). "Sallie Mae Names Education Unit Navient as Lender Splits in Two". Bloomberg. 
  • Seder, Andrew M. (May 29, 2013). "Sallie Mae will split, become two companies". Associated Press. 
  • Carrns, Ann (March 6, 2013). "Sallie Mae Lowers Top Loan Rates for Graduate Students". New York Times. 
  • Simon, Ruth (April 5, 2013). "New Options for Student-Loan Borrowers". Wall Street Journal. 
  • Gobel, Reyna (May 22, 2013). "Smart Ways to Mix Student Loans, College Savings". U.S. News & World Report. 

Further reading

  1. ^ a b "2014 Year End Earnings (2014) Sallie Mae" (web). Retrieved 11 March 2015. 
  2. ^ Certificate of incorporation of SLM Corporation
  3. ^ "Reuters SLM Corp. Profile". Reuters. Retrieved 2009-10-06. 
  4. ^ "Yahoo Finance SLM Corp. Profile". Yahoo Finance. Retrieved 2009-10-06. 
  5. ^ “Salllie Mae Completes Strategic Separation.”, March 11, 2015.
  6. ^ “Sallie Mae History.”, 27 March 2015.
  7. ^ "Investor group to buy Sallie Mae for $25 billion". Sallie Mae, Inc. Archived from the original on April 22, 2008. Retrieved July 25, 2014. 
  8. ^ "College Cost Reduction and Access Act" (PDF). U.S. Government Printing Office. September 27, 2007. Retrieved July 25, 2014. 
  9. ^ Wighton, David; Politi, James (September 27, 2007). "JC Flowers team drops Sallie Mae bid". The Financial Times. Retrieved July 25, 2014. 
  10. ^ "Sallie Mae drops takeover lawsuit".  
  11. ^ Spalding, Tom (April 6, 2009). "Sallie Mae to add 2,000 jobs in U.S.". Indianapolis Star. Retrieved July 25, 2014. 
  12. ^ Chernenkoff, Kelly (March 31, 2010). "Sallie Mae Blames 2,500 Layoffs on Obama's Student Loan Overhaul". FOX News. Retrieved March 31, 2010. 
  13. ^ Hilzenrath, David S. (July 2, 2010). "Sallie Mae to move headquarters from Reston to Delaware, taking hundred of jobs".  
  14. ^ "Citigroup quits student loan business". United Press International. September 18, 2010. Retrieved July 25, 2014. 
  15. ^ “Sallie Mae About Us.”, 27 March 2015.
  16. ^ “Sallie Mae Appoints Vice Chairman.”, 2 April 2015.
  17. ^ “Sallie Mae Who We Are.”, 2 April 2015.
  18. ^ Mulholland, Sarah (May 29, 2013). "Sallie Mae to Split Into Two Companies as Remondi Named CEO". Bloomberg. Retrieved July 25, 2014. 
  19. ^ Adler, Neil (May 5, 2005). "Sallie Mae tops philanthropy list". Washington Business Journal. Retrieved July 25, 2014. 
  20. ^ “Sallie Mae Simplifies Saving and Banking.”, 13 April 2015.
  21. ^ “Kiplinger Names Sallie Mae Best Money Market Account.”, 13 April 2015.
  22. ^ “Sallie Mae Money Market Account Recognized Top Savings Option.”, 13 April 2015.
  23. ^ “The Best of Everything, 2013.”, 13 April 2015.
  24. ^ "United States Of America ex-rel. Michael Zahara, vs. SLM Corporation et al." (PDF). Student Loan Stories. October 29, 2008. Retrieved July 25, 2014. 
  25. ^ "Man jailed in extortion bid against candidate". Las Vegas Review-Journal. July 24, 2008. Retrieved July 25, 2014. 
  26. ^ a b "Lawsuits Against Salle Mae". PBS. June 19, 2009. Retrieved July 25, 2014. 
  27. ^ Schorn, Daniel (May 5, 2006). "Sallie Mae's Success Too Costly?".  
  28. ^ "Boston Globe". Archived from the original on April 30, 2008. 
  29. ^ Farrington, Robert (August 21, 2013). "NelNet Student Loan Servicing Problems". The College Investor. Retrieved July 25, 2014. 
  30. ^ Burd, Stephen (October 9, 2007). "Sallie Mae Demands SUNY Colleges Turn Over Students' Personal Data". New America Foundation. Retrieved November 17, 2008. 
  31. ^ "Sasha Rodriguez & Cathelyn Gregoire on Behalf of All Persons Similarly Situated vs. Sallie Mae (SLM) Corporation" (PDF). New America Foundation. December 17, 2007. Retrieved July 25, 2014. 
  32. ^ Guess, Andy (2007-07-05). Redlining' or Reasonable Criterion?"'". Inside Higher Ed. Retrieved 2009-07-17. 
  33. ^ "SDSD District Version 1.3". United States District Court for the District of Connecticut. Retrieved July 25, 2014. 
  34. ^ "SDSD District Version 1.3". United States District Court for the District of Connecticut. Retrieved July 25, 2014. 
  35. ^ "SLM Corporation (a/k/a Sallie Mae)". Archived from the original on September 21, 2012. 
  36. ^ Field, Kelly (August 15, 2010). "Nelnet to Pay $55-Million to Resolve Whistle-Blower Lawsuit". The Chronicle of Higher Education. Retrieved July 25, 2014. 
  37. ^ The 9.5 Scandal |
  38. ^ "Sallie Mae's Student Lending, Collections Under Multistate Probe". Collections & Credit Risk. February 21, 2014. Retrieved July 25, 2014. 


See also


On February 20, 2014 Illinois Attorney General Lisa Madigan's office announced that an investigation into Sallie Mae's debt collection practices and loan servicing practices had been opened.[38]

A False Claims suit was filed against Sallie Mae by former U.S. Department of Education researcher, Dr. Oberg. The suit alleges that Sallie Mae and other lenders deliberately overcharged the U.S. government.[36] The findings by Oberg were labeled among higher education policy analysts as the 9.5 scandal.[37]

On January 31, 2008, SLM Corporation had a lawsuit for failing to adequately reserve for losses in Sallie Mae's non-traditional portfolio,[35] and paid $35,000,000 for settlement.

In December 2007, a class action lawsuit was brought against Sallie Mae in a Connecticut Federal Court.,[31] alleging that the company discriminated against African American and Hispanic private student loan applicants by charging them high interest rates and fees. The lawsuit also alleged that Sallie Mae failed to properly disclose private student loan terms to unsuspecting students. New York Attorney General, Andrew Cuomo, raised similar concerns about possible student loan redlining in June 2007.[32] The lawsuit was settled and dismissed in 2011. Under the terms of the settlement, Sallie Mae agreed to make a $500,000 donation to the United Negro College Fund[33] and the attorneys for the plaintiffs received $1.8 million in attorneys' fees.[34]

On October 10, 2007, documents surfaced showing that Sallie Mae was attempting to use the Freedom of Information Act to force colleges to turn over students' personal information.[30] The university involved, the State University of New York system, is expected to decline the request and be forced to defend its position in court.

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.[28] 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 to donate $2 million (USD) to a fund devoted to educating college-bound students about their loan options.[29]

A 60 Minutes segment (originally aired May 7, 2006) examined Sallie Mae, including its business practices. US Senator Elizabeth Warren, then a professor of law at Harvard Law School, an expert on bankruptcy and an outspoken critic of consumer lenders, questioned Sallie Mae's dual role as both lender and collector.[27]

On November 9, 2005, former Sallie Mae employee Michael Zahara filed a federal lawsuit against the company, alleging that it had a pattern and practice of granting [26]


In 2014, Sallie Mae was recognized as one of America’s healthiest banks by

In December 2013, Kiplinger’s Personal Finance recognized Sallie Mae Bank as the Best Savings Account.[23]

In December 2012, Kiplinger’s Personal Finance recognized Sallie Mae Bank as “the best place to stash cash.”[22]

In December 2011, Kiplinger’s Personal Finance recognized Sallie Mae Bank as the Best Money Market Account.[21]

In December 2010, Kiplinger’s Personal Finance recognized Sallie Mae Bank as the Best Online Savings Account.[20]

The Sallie Mae Fund earned the 2007 Insight Award for Customer Advocacy in Financial Services (from Insight Forums, LLC). The award recognizes financial communications initiatives that proactively enable customers to make fully informed choices.

Sallie Mae won the Ron Brown Award for Corporate Leadership in 2006. It was honored for three college-access programs developed by The Sallie Mae Fund: Latino College Access Campaign, Project Access: DC, and The Sallie Mae Fund Scholarship Programs.

Through The Fund's work, Sallie Mae was named among BusinessWeek's Top 15 Corporate Philanthropists in 2004. The Washington Business Journal identified the company as the top local corporate philanthropist in 2005.[19]

Sallie Mae sponsors The Sallie Mae Fund, a charitable organization with a mission to increase access to higher education for America's students by supporting and starting programs and initiatives that help open doors to higher education. The Sallie Mae Fund prepares families and students for college and provides scholarship funding that focuses on minority, low-income, and "first in the family" students. Since 2001, The Sallie Mae Fund has awarded $10 million in scholarships to help 4,000 students enroll in college.

Corporate Responsibility Officer has named Sallie Mae one of America's "100 Best Corporate Citizens" five times. Corporations (over 1,100 are evaluated) are selected according to community, governance, diversity, and environmental best business practices.

Social responsibility

Raymond J. Quinlan is Chairman of the Board of Directors. He joined the board in 2014 replacing previous Chairman Anthony P.Terracciano—formerly President of First Union Corporation (now Wachovia). Quinlan is also the chief executive office of Sallie Mae. He took over as CEO when the company announced its strategic separation in May 2014, Albert Lord held the positions of Vice Chairman and CEO until his retirement 2013. Lord joined Sallie Mae in 1981, took over as CEO in 1995, and led the company's privatization. On May 29, 2013, the board announced Jack Remondi as Lord's successor.[16][17][18]

Corporate board

The Sallie Mae corporate headquarters is in Newark, Delaware. Sallie Mae also has offices in Newton, Massachusetts; Fishers, Indiana; Salt Lake City, Utah; and Reston, Virginia.

Corporate information

2014: Sallie Mae split into two, publicly traded entities: a consumer banking business and a newly named loan management, servicing and asset recovery business, Navient Corporation.[15]

2012: Sallie Mae expands its private education loan options by introducing a new fixed interest rate version of the Smart Option Student Loan.

2011: Sallie Mae expands its saving, planning, and paying for college financial services initiatives with retail banking products: high-yield savings accounts, CDs, and checking accounts through Sallie Mae Bank® and credit cards with rewards to help pay down education loans. Sallie Mae Insurance Services launches, featuring products to help families protect their investment in higher education.

On September 17, 2010, it was announced that Sallie Mae will acquire federally insured loans from Citigroup-owned Student Loan Corporation worth $28 billion.[14]

On July 1, 2010, Sallie Mae announced that it will be moving its headquarters from Reston, Virginia, to its existing facility in Newark, Delaware, in 2011.[13]

On March 31, 2010, Sallie Mae announced the impending layoff of 2,500 employees in response to the signing of new legislation calling for the federal government to lend directly to students, bypassing institutions like Sallie Mae.[12]

2010: Congress passes the Health Care and Education Reconciliation Act of 2010, which eliminates the public-private partnership Federal Family Education Loan Program (FFELP). Effective July 1, 2010, all federal loans are originated directly by the U.S. Department of Education.

On April 6, 2009, Sallie Mae announced that it will move 2,000 jobs back to the U.S. within the next 18 months as it shifts call center and other operations from overseas.[11]

2009: The Smart Option Student Loan® —a private education loan—is introduced, an innovative loan that provides life-of-loan savings with in-school interest payments.

2008: Sallie Mae is selected to service federal loans on behalf of the U.S. Department of Education.

[10].Bank of America Sallie Mae subsequently began legal action, only to drop it in January 2008 upon completion of a $31 billion funding round, including funding from [9].2007 subprime mortgage financial crisis and the tightening of global credit markets following the [8] The deal fell through in September 2007, with the buyers blaming adverse changes to the business's outlook as a result of the College Cost Reduction and Access Act of 2007[7]

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