SLM Corporaon Financial Analysis
SLM Corporation Financial Analysis
Page 1
SLM Corporaon Financial Analysis
SLM Corporations, commonly known as Sallie Mae, is the nation’s number one financial
services company specializing in education. Since its launch in 1972, Sallie Mae has offered
saving programs, planning resources and financing options that have helped millions of people
make the investment in higher education. While Sallie Mae was originally created as a
government-sponsored entity, the company began privatizing its operations in 1997, a process it
completed at the end of 2004 when the company terminated its ties to the federal government.
Today, SLM Corporation and its subsidiaries are a publicly held, private sector company,
governed by a board elected by shareholders.
Sallie Mae acquires, finances, and services private education loans to customers in the
United States. Currently, Sallie Mae has three primary operating business segments: Consumer
Lending, Business Services, and Federal Family Education Loan Program (FFELP) Loans. In
addition, it operates a consumer savings system that helps families improve their college savings
plan by providing financial rewards on everyday purchases.
In the Consumer Lending Segment, the company focuses on acquiring, financing, and
servicing Private Education Loans. Sallie Mae offers Private Education Loans to primarily
bridge the gap between the cost of higher education and the amount funded through financial aid
and federal loans. Originating new Private Education Loans is pivotal for growing the Consumer