Sallie Mae Pulls Offer For PennsylvaniaStudent Lender

RESTON, Va. - (09/02/05) -- Student loan giant Sallie Mae saidit has terminated its $1 billion offer to acquire the PennsylvaniaHigher Education Assistance Association but is still interested insome kind of partnership with the state-owned student lender. Acompany official told Gov. Ed Rendell in April the $1 billion offerwould expire Aug. 31, unless it was extended. Sallie Mae said anexpected change in federal law in student loans should make thestudent loan agency worth less. The PHEAA, which is controlled bythe state legislature, rejected Sallie Mae's offer out of hand,saying the company's for-profit structure was contradictory to thegoals of the state-run agency. PHEAA is the largest originator ofstudent loans in Pennsylvania, with Sallie Mae third, behind PNCBank.