DEFINITION of 'Nellie Mae'

A non-profit organization that provides education loans in the United States. Nellie Mae was founded in Massachusetts and is the largest non-profit provider of student loans in the United States, helping student across the country pay for their education. It has been a wholly owned subsidiary of SLM Corporation, known as Sallie Mae, since 1999.


Nellie Mae stands for New England Education Loan Marketing Corporation.

BREAKING DOWN 'Nellie Mae'

Nellie Mae was created in order to purchase student loans, securitizing them to be sold off to investors. Student loans were guaranteed by the Federal Family Education Loan Program (FFELP), with further financial backing by the U.S. Department of Education (DOE).

RELATED TERMS
  1. Sallie Mae - Student Loan Marketing ...

    A publicly traded company that is the largest provider of educational ...
  2. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students ...
  3. Student Loan Interest Deduction

    A tax deduction for interest paid on higher education loans during ...
  4. Direct Consolidation Loan

    A loan that combines two or more federal education loans into ...
  5. Lifetime Learning Credit

    A provision of the U.S. federal income tax code that lets parents ...
  6. Whole Loan

    A single residential or commercial mortgage that a lender has ...
Related Articles
  1. Personal Finance

    What Is Sallie Mae And How Does It Work?

    Sallie Mae is the only game in town for some would-be college students seeking loans, so it's not surprising that it's got huge growth ambitions.
  2. Personal Finance

    Top Student Loan Providers

    Many banks and institutions offer student loans, but some offer better deals than others. Read this list of top student loan providers before you borrow.
  3. Personal Finance

    Benefits of Federal Direct Loans

    Federal Direct Loans are the most popular federal student loans. This list of benefits will explain why.
  4. Personal Finance

    Facts You Didn't Know About Private Student Loans

    Take a close look at the characteristics of private student loans before deciding it's the best path to take.
  5. Financial Advisor

    Federal Direct Loans

    These are the most popular type of federal student loan. Read this guide to the types you can get, how much you can borrow and repayment options.
  6. Managing Wealth

    How Paying for Higher Education Has Become Riskier

    Think student loan balances are a big issue? Here are several more things that are conspiring to make paying for a higher education harder and riskier.
  7. Personal Finance

    College Loans: Private vs. Federal

    Not all student loans are the same. Know what you're getting into before signing on the dotted line.
  8. Personal Finance

    Don’t Fail Student Loan Debt 101

    Don't be a statistic! According to a recent study, six in 10 Millennials don’t know what they owe or what to do with student loans after they graduate.
  9. Personal Finance

    Who Should Pay For College?

    With college costs continuing to escalate, the question of who pays for it is increasingly relevant.
  10. Personal Finance

    Managing Student Loans: 3 Things to Consider

    You can better manage the burden of student loan debt by following these three steps.
RELATED FAQS
  1. Can Sallie Mae loans be consolidated?

    Understand whether Sallie Mae loans can be consolidated. Learn about additional options that can lower the monthly payments ... Read Answer >>
  2. Do Sallie Mae loans go directly to your school?

    Understand the types of financial aid and student loans that Sallie Mae offers college students. Learn when funds are disbursed ... Read Answer >>
  3. How does Sallie Mae disburse funds?

    Understand what Sallie Mae is and how it operates. Learn about the different ways in which Sallie Mae disburses funds to ... Read Answer >>
  4. Federal student loan rates: who sets them, why they vary

    Federal student loan rates are set by Congress, not by banks. Learn more about who gets what rate, and how often they get ... Read Answer >>
Trading Center