WASHINGTON - Legislation that would privatize the Student Loan Marketing Association was introduced in the House last week.

"This is a win-win proposition for everyone - Sallie Mae, its owners, students and their parents, schools, lenders, and taxpayers," said Lawrence A. Hough, the company's president and chief executive officer.

However, student lenders expressed concern that Sallie Mae could become an unfairly competitive player in the student loan origination business as it seeks new revenue sources.

"Our main concern is that Sallie Mae continue to be there as a source of liquidity for lenders," said Kawika Daguio, federal representative at the American Bankers Association, "but we are also concerned about Sallie Mae competing in the area of traditional bank lending."

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