DEFINITION of 'Sallie Mae - Student Loan Marketing Association'

Sallie Mae is a publicly traded company that is the largest provider of education loans in the United States, as of 2016. Along with providing student loans, Sallie Mae purchases student loans from original lenders and provides financing to state-based student-loan agencies.

Sallie Mae was originally formed in 1972 as a government enterprise, but as of 2004, is a completely independent publicly traded company. Sallie Mae is traded on the New York Stock Exchange with the ticker symbol SLM.

BREAKING DOWN 'Sallie Mae - Student Loan Marketing Association'

Sallie Mae is formally known as SLM Corporation, which stands for the Student Loan Marketing Association. The structure and operations of Sallie Mae have drastically changed since its founding. It began as a government entity providing federal education loans to students, and originating federally guaranteed student loans under the Federal Family Education Loan Program (FFELP). It acted as both a servicer and collector of federal student loans on behalf of the Department of Education. In time, Sallie Mae went private, beginning the privatization process in 1994 and becoming fully privatized in 2004.

The company's current primary operations include originating, servicing and collecting completely private education loans. Sallie Mae also offers tools and services to prepare students for college, including Upromise Rewards and other planning tools and resources. In 2014, Sallie Mae's loan servicing operation and the majority of its loan portfolio spun off into a separate publicly traded business, known as Navient Corporation.

One of the world's largest private education loan providers in the United States, the company employs nearly 2,000 individuals across the country and manages more than $10 billion in assets as of 2016.

Sallie Mae plans to debut its newest offering, its own parent loan, in 2016. This newest loan option is similar to options offered by other major private loan companies in the United States. Under this parent loan, a student's parents will be able to borrow money for college tuition, potentially at a discount from other private loan providers. The interest rate for these loans will range from 3.75% up to 13% and will depend on student and parental qualifications and other factors. Parents will have up to 10 years to pay off the entirety of these loans. Sallie Mae's newest loans offer parents the ability to take out a line of credit at reasonable interest rates and avoid the steep 4.3% upfront fee charged on the line of credit offered through the Federal government's Plus program.

RELATED TERMS
  1. Nellie Mae

    A non-profit organization that provides education loans in the ...
  2. Student Loan Forgiveness

    Under certain circumstances, federally backed student loans — ...
  3. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students ...
  4. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
  5. Direct Consolidation Loan

    A loan that combines two or more federal education loans into ...
  6. Student Loan Interest Deduction

    Student Loan Interest Deduction is a tax deduction for interest ...
Related Articles
  1. Personal Finance

    5 Tips to Lower Your Sallie Mae Payments

    Learn the essential tips on how to work with the Sallie Mae Corporation to lower the monthly payments on your private student loan.
  2. Personal Finance

    How Sallie Mae Affects Student Loans

    Sallie Mae, which has financed many a college education, originally was a federally chartered government sponsored enterprise. Now, it does private loans.
  3. 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.
  4. 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.
  5. 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.
  6. Personal Finance

    How To Score A Private Student Loan

    Think of private student loans as a last resort to pay for college – they cost more than other types. Here's how to find the best deals if you need one.
  7. Personal Finance

    Benefits of Federal Direct Loans

    Federal Direct Loans are the most popular federal student loans. This list of benefits will explain why.
  8. Financial Advisor

    Deal with Your College Debt Using These Steps

    The worst thing to do with college debt is to ignore it. The best way to start tackling it is with a clear roadmap to financial freedom.
  9. 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.
  10. Personal Finance

    50% of College Students Believe Their Loans Will Be Forgiven by the Federal Government

    Candidate Trump suggested reforms, but will student loans be forgiven by the federal government across-the-board?
RELATED FAQS
  1. How can I find out what Sallie Mae's interest rates are?

    Learn how to find fixed and variable interest rates that Sallie Mae charges in its education loans for graduate and undergraduate ... 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. 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 >>
Trading Center