Sallie Mae originates loans under federal solution

RESTON, Va.—SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, today issued the following statement regarding implementation of the U.S. Department of Education’s loan participation purchase program authorized under the “Ensuring Continued Access to Student Loans Act of 2008”:

We are the first company to receive funds under the U.S. Department of Education’s new program that guarantees there will not be a shortage of federal student loans this year. Sallie Mae is actively reaching out to students and colleges to make sure that every student at every college has access to federal student loans.

We also stand ready to continue working with Congress and the Administration to bolster the long-term health of the student lending program.

Sallie Mae was approved to participate in this program on Aug. 14. An initial funding request was made on Aug. 15, and the company received funding in three business days. Sallie Mae estimates that it will originate $20 billion or more in federal Stafford and PLUS loans eligible for participation in the Department of Education’s program this academic year.