SLM Corporation (commonly known as Sallie Mae initially The Student Loan Marketing Association ) is a publicly traded US company that provides consumer banking. Its nature has changed dramatically since its inception in 1973. At first, it was a government entity serving a federal education loan. Then became private and began offering private student loans, although at one point had contracts to serve federal loans.
The main business of the company is to originate, serve, and collect private education loans. The company also provides college savings tools such as Upromise Gifts business and online planning for campus equipment and resources. Sallie Mae previously originated a federally guaranteed student loan originated under the Federal Family Education Loan Program (FFELP). and work as a federal student loan and collector on behalf of the Department of Education. The company now offers private education loans and manages assets of more than $ 12.97 billion. Sallie Mae employs 1,400 people in offices across the United States.
On April 30, 2014, Sallie Mae separated the lending operations and most of the loan portfolio into a publicly traded, privately-named entity called Navient Corporation. Navient is the largest lender of federal student loans and acts as a collector on behalf of the Department of Education.
Video Sallie Mae
Histori
The Student Loan Marketing Association was originally created in 1972 as a government-sponsored company (GSE) and began to privatize its operations in 1997, a process completed in late 2004 when Congress ends the federal charter, ending its relationship with the government. The company remains the originator of the largest federal student loan insured in the country. Through its subsidiaries and specialty divisions, Sallie Mae also provides debt management services as well as business and technical products to a variety of business clients, including colleges, universities and loan guarantor.
In 2005, Sallie Mae was among 53 entities that contributed a maximum of $ 250,000 to the second inauguration of President George W. Bush.
In August 2006, Sallie Mae acquired Upromise, a company that provides rebates to buyers of certain brands, which can be applied to college savings accounts. Sallie Mae and Upromise plan to market a comprehensive financial package to parents and students, including investment plans, financial aid information, and student loans.
On April 16, 2007, Sallie Mae announced that a group of investors led by J.C. Flowers & amp; Co. signed an agreement to buy Sallie Mae for about $ 25 billion. Should the transaction finish, J.C. Flowers along with private equity firm Friedman Fleischer & amp; Lowe will own 50.2% of Sallie Mae, and Bank of America and JPMorgan Chase will each have 24.9%. Sallie Mae will stop being a public company. The deal fell in September 2007, with buyers blaming negative changes on business prospects as a result of the College Cost Reduction and Access Act of 2007 and the tightening of the global credit market following the 2007 subprime mortgage financial crisis. Sallie Mae then started legal action, only to drop it in January 2008 after the completion of a $ 31 billion funding round, including funding from Bank of America.
On April 6, 2009, Sallie Mae announced that he would move 2,000 jobs back to the US in the next 18 months as he shifts call centers and other operations from abroad.
On March 31, 2010, Sallie Mae announced an upcoming layoff of 2,500 employees in response to the signing of a new law calling on the federal government to lend directly to students, passing institutions such as Sallie Mae.
On July 1, 2010, Sallie Mae announced that they would move its headquarters from Reston, Virginia, to an existing facility in Newark, Delaware, in 2011.
On September 17, 2010, it was announced that Sallie Mae would obtain a federal insured loan from Citigroup owned by Student Loan Corporation for $ 28 billion.
On February 25, 2014, Sallie Mae announced a new name for the student loan side to be called "Navient".
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Company information
Sallie Mae's corporate headquarters are in Newark, Delaware. Sallie Mae has offices in Newton, Massachusetts; Indianapolis, Indiana; Salt Lake City, Utah; and Reston, Virginia.
Company board
Raymond J. Quinlan is chairman of the Board of Directors. He joined the council in 2014 to replace the previous chairman Anthony P. Terracciano - former president of First Union Corporation (now Wells Fargo). Quinlan is also Sallie Mae's chief executive officer. He took over as CEO when the company announced its strategic separation in May 2014. Albert Lord held the position of deputy chairman and CEO until his retirement in 2013. Lord joined Sallie Mae in 1981, took over as CEO in 1995, and led the privatization of the company.. On May 29, 2013, the council announced Jack Remondi as God's successor.
Social responsibility
Corporate Responsibility has named Sallie Mae one of America's "100 Best Corporate Citizens" five times. Corporations (over 1,100 evaluated) are selected according to society, governance, diversity, and best environmental business practices.
Sallie Mae sponsors Dana Sallie Mae, a charitable organization with a mission to improve access to higher education for American students by supporting and initiating programs and initiatives that help open the door for higher education. Dana Sallie Mae prepares families and students for college and provides scholarship funding that focuses on minority, low-income, and "first in family" students. Since 2001, The Sallie Mae Fund has awarded a $ 10 million scholarship to help 4,000 students enroll in college.
Through the work of The Fund, Sallie Mae was selected among the Top 15 Corporate Philanthropists in 2004. The Washington Business Journal identified the company as the top local corporate philanthropist in 2005.
Sallie Mae won the Ron Brown Prize for Corporate Leadership in 2006. Awards are awarded for three college access programs developed by The Sallie Mae Fund: Latin University Access Campaign, Project Access: DC, and Dana Sallie Mae Scholarship Program.
The Sallie Mae Fund won the Insight 2007 Award for Customer Advocacy in Financial Services (from Insight Forums, LLC). The award recognizes financial communication initiatives that proactively enable customers to make informed choices.
In December 2010, Kiplinger Personal Funding acknowledged Sallie Mae Bank as the Best Online Savings Account.
In December 2011, Kiplinger Personal Funding acknowledged Sallie Mae Bank as the Best Money Market Account.
In December 2012, Kiplinger Personal Finance admitted Sallie Mae Bank as "the best place to save cash."
In December 2013, Kiplinger Personal Funding acknowledged Sallie Mae Bank as the Best Savings Account.
Controversy
The 60 Minutes segment (originally aired May 7, 2006) checks Sallie Mae, including her business practices. US Sen. Elizabeth Warren, a law professor at Harvard Law School, a bankruptcy expert and consumer lender critic, questions Sallie Mae's double role as a lender and collector.
In February 2007, New York Attorney General Andrew Cuomo launched an investigation into alleged deceptive lending practices by student lenders, including The College Board, EduCap, Nelnet, Citibank and Sallie Mae. On April 11, 2007, Cuomo concluded his investigation of Sallie Mae and announced that Sallie Mae voluntarily agreed to change his loan standard to comply with a new code of ethics for student loan practices established by Cuomo, and donated $ 2 million (USD) to a designated fund to educate university-bound students about their loan options.
On October 10, 2007, documents appeared indicating that Sallie Mae was trying to use the Freedom of Information Act to force the college to submit the students' personal information. The universities involved, the State University of New York system, are expected to deny requests and be forced to retain their positions in court.
In December 2007, a class action lawsuit was filed against Sallie Mae in Connecticut federal court stating that the company discriminates African and Hispanic student loan applicants on a personal basis by charging high interest and fees. The lawsuit also alleges that Sallie Mae failed to properly disclose the terms of private student loans to unsuspecting students. New York Attorney General Andrew Cuomo expressed the same concern about the possibility of a declining student loan in June 2007. The lawsuit was settled and dismissed in 2011. Under the terms of the settlement, Sallie Mae agreed to make a $ 500,000 contribution to the British College of Higher Education Fund and the lawyers for the plaintiff receive $ 1.8 million in attorney's fees.
On January 31, 2008, SLM Corporation has a lawsuit for failing to reserve a loss in Sallie Mae's non-traditional portfolio and paying $ 35,000,000 for settlement.
A fake lawsuit filed against Sallie Mae by former US Department of Education researcher, Dr. Oberg. The lawsuit alleges that Sallie Mae and other lenders are deliberately burdening the US government. The findings by Oberg are labeled among high education policy analysts as scandal 9.5.
On February 20, 2014 Illinois Illinois attorney office Lisa Madigan announced that an investigation into Sallie Mae's debt collection practices and lending practices had been opened.
Source of the article : Wikipedia
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