The Federal Reserve Board has reduced the capital requirement on some securities issued by SLM Funding Corp.

Department of Education-backed student loans are subject to a 1.6% reserve requirement, the Fed said. International capital accords generally require a bank to hold 8% capital reserves on all securities, though the rules permit lower capital reserves for some types of government-supported debt. SLM Funding Corp. is a subsidiary of SLM Holding Corp., the parent of Sallie Mae.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.