Sallie Mae Eyes GSE Closure

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RESTON, Va. - (11/18/04) -- Student loan giant SLM Corp., betterknown as Sallie Mae, said it expects to wind-down its governmentsponsored enterprise as part of its unprecedented privatization byyear-end, four years ahead of schedule. As part of the wind-downthe GSE paid a cash dividend to the parent company of $900 millionon Oct. 28. The company said it is no longer funding operations,including the purchase of guaranteed student loans under the GSEcharter, which provided it with lower borrowing costs because ofthe government charter. As a result, credit unions are no longerable to invest in securities issued by the company.

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