May 21, 2008

Sallie Mae will not drop out of Federal student loan program

Posted in Misc at 2:20 PM by Joe From Boston

I just sat in on the conference call from Sallie Mae (to the world at large, it seemed). Here are some highlights of what I heard:

  • CEO Al Lord announced that Sallie Mae will remain in the business of federal student loans for now, said that “Economics are barely okay.”
  • Sallie Mae will commit to lending for the 2008-2009 season, which is through June 30, 2009
  • They may return to lend at schools they’d previously dropped
  • The apparently made their decision at 1:08 pm today
  • They are staying in the FFELP program because of the government’s favorable announcement earlier today of 1% referral fee + $75 per loan profit for all lenders
  • They asked everyone to call Congress to protect their servicing business (i believe with the currently proposed scheme, when the Dept of Ed buys the loan, they intend to service it)

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