DESCRIPTION: A private corporation established in D.C. by Congress to maintain a secondary market and warehousing facility for guaranteed student loans. Sallie Mae purchases student loans directly and also lends money against student loans offered as collatoral. The corporation obtains funds for its program activities primarily through the issuance of debt obligations guaranteed by the secretary of Education. 1979 TOTAL INTEREST INCOME ON LOANS, NET: $133.64 million. WAREHOUSING ADVANCES AND INSURED STUDENT LOANS PURCHASED: $1.44 billion. NOTES PAYABLE: $1.5 billion. DIVIDENDS: $1 million ($6 a share). FOUNDED: Chartered by Congress in 1972. TOP EXECUTIVES: E. T. Dunlap, chairman; Edward A. Fox, president and chief executive.
In a year of rising interest rates and limited availability of money, Sallie Mae nearly doubled its volume of secondary market support of primary lenders in the government's Guaranteed Student Loan Program. With increases in the costs of post-secondary education and demand for loans, more and more lenders turned to Sallie Mae to increase liquidity. Commitments to buy loans rose from $65 million in 1978 and $502 million at the end of 1979. During the year, 313 institutions used Sallie Mae services, including banks, savings and loan associations and (for the first time) federal credit unions. Locally, Sallie Mae has provided loans of more than $25 miliion through an arrangement with First American Bank of D.C. and the Department of Education.