SLM Corporation originates, services, and collects loans made to students and their families to finance the cost of their education. The company also provides servicing, loan default aversion and defaulted loan collection services for loans owned by other institutions, including the U.S. Department of Education (ED), as well as processing capabilities to educational institutions and college-savings plan programs. It also operates a consumer savings network that provides financial rewards on everyday purchases to help families save for college. Segments The company has three segments: Consumer Lending, Business Services, and Federal Family Education Loan Program (FFELP) Loans. Consumer Lending This segment originates, acquires, finances, and services Private Education Loans. The company’s Private Education Loans are made primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or customers’ resources. Private Education Loans bear the credit risk of the customer and cosigner. The company manages this risk by underwriting and pricing based upon customized credit scoring criteria and the addition of qualified cosigners. Business Services This segment services the company’s FFELP Loan portfolio and performs servicing, default aversion, and contingency collections work on behalf of Guarantors of FFELP Loans and other institutions. ED Collection and Servicing Contracts: The company provides collection services on defaulted student loans to ED. It serviced approximately 4.3 million accounts under the ED Servicing Contract as of December 31, 2012. Other: Upromise provided program management services for 529 college-savings plans with assets in 31 college-savings plans in 16 states as of December 31, 2012. The company also generates transaction fees through its Upromise consumer savings network. The company’s Campus Solutions business offers a suite of solutions designed to help campus business offices increase their services to students and families. The product suite includes electronic billing, collection, payment and refund services plus tuition payment plan administration. FFELP Loans This segment consists of the company’s FFELP Loan portfolio and the underlying debt and capital funding the loans. FFELP Loans are insured or guaranteed by state or not-for-profit agencies and are also protected by contractual rights to recovery from the United States pursuant to guaranty agreements among ED and these agencies. In the case of death, disability, or bankruptcy of the borrower, these guarantees cover 100 percent of the loan’s principal and accrued interest. Supervision and Regulation The company is subject to the Higher Education Act and from time to time, its student loan operations are reviewed by ED and Guarantors. As a third-party service provider to financial institutions, the company is also subject to examination by the Federal Financial Institutions Examination Council. Some of the federal laws and regulations that are applicable to the company’s business include various laws governing unfair, deceptive, or abusive acts or practices; the Truth-In-Lending Act; the Fair Credit Reporting Act; the Equal Credit Opportunity Act; the Servicemembers Civil Relief Act; the Telephone Consumer Protection Act; and the Gramm-Leach-Bliley Act. The company’s Upromise 529 college-savings activities are subject to regulation by the Municipal Securities Rulemaking Board, the Financial Industry Regulatory Authority, and the Securities and Exchange Commission, as well as various state regulatory authorities. History SLM Corporation was founded in 1972.
slm corp (SM1:Berlin)
300 Continental Drive
Newark, DE 19713
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To contact SLM CORP, please visit www.salliemae.com. Company data is provided by Capital IQ. Please use this form to report any data issues.