SLM Corporation
From Wikipedia, the free encyclopedia
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.
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[edit] 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, the nation’s leading saving-for-college company. Together, Sallie Mae and Upromise will offer parents and students a comprehensive financial package to access college—including a broad range of investment options, financial aid information, college savings and student loan solutions.
[edit] Corporate Information
Sallie Mae operates servicing centers in Gilbert, Arizona; Panama City, Florida; Indianapolis, Indiana; Mount Laurel, New Jersey; Wilkes-Barre, Pennsylvania, and Killeen, Texas, as well as 72 other offices in the United States.
Sallie Mae is listed on both the Fortune 500 and the Forbes Global 2000. The company has been recognized as one of the 100 Best Corporate Citizens according to Business Ethics magazine, and one of the top 30 companies for executive women by the National Association of Female Executives.
[edit] Corporate Board
Thomas Fitzpatrick is the current CEO of Sallie Mae. Mr. Fitzpatrick succeded Albert Lord, who is now Chairman of the Board of Sallie Mae. Mr. Lord joined Sallie Mae in 1981, took over as CEO in 1995, and led the company's privatization.
[edit] Social Responsibility
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 programs and initiatives that help open doors to higher education, prepare families for their college investment, and bridge the gap when no one else can.
Through The Fund's work, Sallie Mae was named among BusinessWeek's Top 15 Corporate Philanthropists in 2004. The Washington Business Journal named the company the top local corporate philanthropist in 2005.[1]
[edit] Controversies
A "60 Minutes" segment (originally aired May 7, 2006) examined Sallie Mae, including its business practices.[2] A professor of law at Harvard Law School, Elizabeth Warren, who is also an expert on bankruptcy and an outspoken critic of consumer lenders, questions Sallie Mae's dual role as both a lender and collector.[3]
New York Attorney General Andrew Cuomo has launched an investigation into alleged deceptive lending practices by student loan providers, including The College Board, EduCap, NelNet, Citibank, and Sallie Mae.[4]
[edit] Subsidiaries
- Academic Management Services Corp. (Acquired 2003)
- Arrow Financial Services (Acquired Majority Interest September 2004)
- First Trust Financial
- General Revenue Corporation (Acquired January 2002)
- GRP Financial Services (Acquired August 2005)
- Nellie Mae (Acquired July 1999)
- Noel-Levitz (Affiliated Since 2000)
- Pioneer Credit Recovery Inc.
- Sallie Mae Bank
- Sallie Mae Home Loans
- Sallie Mae Inc.
- SLM Financial Corporation
- Southwest Student Services Corporation (Acquired October 2004)
- Student Assistance Corporation
- Student Loan Finance Association (Acquired November 2004)
- Student Loan Funding (Acquired July 7, 2000)
- Upromise (Acquired August 23, 2006)
