State Loan Agency Rejects Sallie MaeBid
HARRISBURG, Pa. - (12/23/04) -- The Pennsylvania Higher EducationAssistance Agency swiftly dismissed a $1 billion takeover offerfrom student loan giant Sallie Mae, saying the state-run agency isnot interested in selling out to the for-profit company. "They arecompelled to continually increase profits at the expense ofstudents and families," said PHEAA in a statement, referring toSallie Mae's recent conversion from a government sponsoredenterprise to a fully private, shareholder owned corporation. PHEAAmanages $45 billion in student loans and provides services to morethan Pennsylvania 170 credit unions. Sallie Mae, which has beenbuying up competitors in the student loan market, offered to lastweek to pay $1 billion for the Pennsylvania agency, comprised of$500 million up front and $100 million in five annualinstallments.