Sallie Mae Bids For State-Run LoanAgency
RESTON, Va. - (12/22/04) -- Student loan giant Sallie Mae, whichhas been buying up competing student lenders, has offered toacquire Pennsylvania's state-run student loan business for $1billion. Under the deal, Sallie Mae would pay $500 million up frontand $100 million annually over the next five years to purchasePennsylvania Higher Education Assistance Agency. Sallie Mae, whichwas originally chartered to facilitate a secondary market forguaranteed student loans made by credit unions and banks, has shedits government charter to become the dominant originator of studentloans. Separately, Sallie Mae said its General Revenue Corp.subsidiary has signed with the state of Ohio to collect defaultedpersonal income taxes.