Sallie Mae try a consumer bank that offers personal student education loans and other borrowing products

Sallie Mae try a consumer bank that offers personal student education loans and other borrowing products
Definition and you may Examples of Sallie Mae
Sallie Mae was an openly-replaced business that is a primary seller away from personal figuratively speaking throughout the You.S. By the third one-fourth away from 2021, Sallie Mae held $20.5 million in private student loans. They kept other $703 mil from inside the federal student education loans given through the now-defunct Government Relatives title loans Sweetwater TN Student loan (FFEL) Program.
How Sallie Mae Really works
This new Sallie Mae today differs from the initial Sallie Mae. From inside the 1972, the newest Student loan Income Connection, also called SLMA otherwise Sallie Mae, is made because of the Congress because the a beneficial “government-backed firm,” or GSE. In other words, it actually was a private, for-earnings organization that had to check out specific guidelines on authorities. The goal of this new SLMA were to try to be a secondary marketplace for college loans to improve access to education.
However in 1983, SLMA became an openly owned organization on the Nyc Stock-exchange. During the 1996, Congress initiated a system to alter SLMA with the an exclusive company. It absolutely was theoretically called SLM Organization and popularly known as Sallie Mae. Continue Reading