U.S. Department of Education Selects Sallie Mae for Student Loan Servicing Contract
18 June 2009 - 7:05AM
Business Wire
SLM Corporation (NYSE:SLM), commonly known as Sallie Mae and the
nation's saving, planning, and paying for education company, today
announced that the U.S. Department of Education has selected Sallie
Mae for its Federal Student Aid Title IV Student Loan
Management/Servicing procurement. Sallie Mae was one of four
contract awardees.
�We are very pleased to be awarded the opportunity to apply our
experience and expertise for the benefit of students and the
American taxpayer,� said Albert L. Lord, vice chairman & CEO.
�We look forward to being a partner with the Department in this
important effort.�
The contract is for the servicing of federal student loans owned
by the Department of Education. It does not include loan
origination or other Title IV services. The five-year contract is
expected to begin in mid-to-late August 2009, and provides for one
five-year renewal option at the Department�s discretion.
Although the Department has not yet announced its immediate
plans for allocating the initial servicing accounts, Sallie Mae has
the immediate scale to add readily more than $100 billion in new
volume.
This press release contains �forward-looking statements�
based on management�s current expectations as of the date of this
release. These statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Because such statements inherently involve risks and uncertainties,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Such risks include,
among others, general economic conditions, changes in the terms of
student loans and the educational credit marketplace arising from
the implementation of applicable laws and regulations, and from
changes in such laws and regulations, adverse results in legal
disputes, changes in the demand for educational financing or in
financing preferences of educational institutions, students and
their families, limited liquidity, increased financing costs and
changes in the general interest rate environment. For more
information, see the company's filings with the Securities and
Exchange Commission, including the forward-looking statements
contained in the company�s Supplemental Financial Information First
Quarter 2009. All information in this release is as of June 17,
2009. The Company does not undertake any obligation to update or
revise these forward-looking statements to conform the statement to
actual results or changes in the Company�s expectations.
SLM Corporation (NYSE:SLM), commonly known as Sallie Mae,
is the nation�s leading provider of saving- and paying-for-college
programs. Through its subsidiaries, the company manages $185
billion in education loans and has 10 million student and parent
customers. Through its Upromise affiliates, the company also
manages $17 billion in 529 college-savings plans, and is a major,
private source of college funding contributions in America with 10
million members and more than $475 million in member
rewards.�Sallie Mae and its subsidiaries offer debt management
services as well as business and technical products to a range of
business clients, including higher education institutions, student
loan guarantors and state and federal agencies. More information is
available at www.salliemae.com. SLM Corporation and
its subsidiaries are not sponsored by or agencies of the United
States of America.