Sallie Mae Student Loan Program

What kind of program is Sallie Mae?

Assisting millions of Americans in obtaining a higher education, Sallie Mae is the top administrator of savings plans for college students and the primary supplier of student loans. Sallie Mae essentially offers loans, private and federal, for students seeking a post-baccalaureate education and for their parents; this includes consolidation loans. Sallie Mae student programs offer competitive student loans with a variety of loan options for every type of student.

The company provides the resources, information, and professional guidance that students and their parents need to get through this process. Student loans for almost ten million people are owned and administrated by Sallie Mae. With about 12,000 people employed in offices across the country, Sallie manages in excess of $18,000,000,000 for a million college savings accounts through Upromise, the largest private source of college funding contributions in the U.S.

The principal loan servicing centers that Sallie Mae operates are in Killeen, TX, Wilkes-Barre, PA, Indianapolis, IN, Gilbert, AZ, and Mount Laurel, NJ, along with 72 additional offices across the U.S.

A Fortune 500 company, Sallie Mae is a leading innovator in information technology as stated by Information Week. Sallie Mae has also been recognized by the National Association for Female Executives (NAFE) as being in the top 30 organizations for executive women. What is the History of Sallie Mae?

Sallie Mae continues to be the largest originator of student loans that are federally insured in the United States. The company offers services for debt management and provides both technical and business products to various colleges, business clients, and loan underwriters. through the divisions and subsidiaries that it owns for these purposes.

Formed originally in 1972 and government sponsored, the Student Loan Marketing Association began to privatize its business in 1997. Congress brought an end to the process in 2004 by imposing a Federal charter. Sallie Mae continues to be the largest supplier of student loans that are government insured in the United States.

The company offers services for debt management and provides both technical and business products to various universities, business clients, and loan underwriters.

Upromise, an organization that gives buyers of selected brands rebates that can be put into college savings accounts, was acquired by Sallie Mae in August of 2006. All-inclusive financial packages, that include information on students loans and financial aid, are planned to be marketed by Upromise and Sallie Mae for students and their parents.

Sallie Mae’s principal products are student loans that are federally guaranteed and stem from the

FFELP (Federal Family Education Loan Program), offering assistance with the process of obtaining financial aid to guidance counselors, parents, and students. Controversies Associated with Sallie Mae

Student loan providers were investigated by the Attorney General in New York, beginning in February of 2007, on the suspicion of having misleading lending practices. Following the investigation, Sallie Mae agreed voluntarily to contribute two million dollars to a college fund for university bound students and modify its standards of lending to be consistent with a new conduct code for issuing student loans.

Problems with customer service and the need to call repeatedly have been documented on the internet. Sallie Mae’s collection policy is exceptionally aggressive.

Due to widespread lobbying efforts, Sally Mae has been exempted from much of the Fair Debt Collection Practices Act. This includes exempting Sallie Mae where standard withholding practices are concerned and imposing enormous penalties that can increase the collection amount by as much as four times.

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