SLM Corporation, through its subsidiaries, originates, services, and collects loans made to students and their families to finance the cost of their education. Segments The company operates through three primary operating business 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 Private Education Loans that the company makes are primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or customers’ resources. It offers responsible Private Education Loan products to families and students. In addition, the company provides various repayment options — reduced monthly payments, interest-only payments, extended repayment schedules, temporary interest rate reductions, and if appropriate, forbearance — all scaled to a customer’s individual circumstances. Private Education Loans bear the full 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 is a holder, servicer, and collector of loans made under the previously existing FFELP from its portfolio of FFELP Loans and servicing that the company has provided for FFELP Loans. The company’s FFELP Loan portfolio would amortize through approximately 20 years. It also provides servicing, loan default aversion, and defaulted loans collection services on behalf of Guarantors of FFELP Loans and other institutions, including the U.S. Department of Education (ED). ED Collection and Servicing Contracts: The company provides collection services on defaulted student loans to ED. It serviced approximately 5.7 million accounts under this Direct Student Loan Program servicing contract as of December 31, 2013. Other: Upromise, Inc. (Upromise) generates transaction fees through the company’s Upromise consumer savings network. The company provides marketing and administrative services to companies that participate in the Upromise savings network. 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. Dispositions In 2013, the company sold its Campus Solutions business and 529 college-savings plan administration business. Supervision and Regulation The company is subject to the Higher Education Act and its student loan operations are periodically 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 primary laws and regulations that are applicable to the company’s business include various laws governing unfair, deceptive or abusive acts or practices; the federal Truth-In-Lending Act and Regulation Z issued by the Federal Reserve Bank (FRB); the Fair Credit Reporting Act and Regulation V issued by the FRB; the ECOA and Regulation B issued by the FRB; the Servicemembers Civil Relief Act; the Fair Debt Collection Act; the Truth in Savings Act and Regulation DD issued by the FRB; Regulation CC issued by the FRB; the Right to Financial Privacy Act; the Electronic Funds Transfer Act and Regulation E issued by the FRB; the Telephone Consumer Protection Act; and the Gramm-Leach-Bliley Act. History SLM Corporation was founded in 1972.
slm corp (SM1:Berlin)
300 Continental Drive
Newark, DE 19713
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