Capital Briefs: Sallie Mae Board Approves Privatization

The board of the Student Loan Marketing Association approved a plan Friday to privatize the government-sponsored enterprise.

After shareholder approval, which is expected May 15, the student loan securitizer would become a piece of SLM Corp., a holding company for a variety of education-related subsidiaries. These related businesses are not allowed under Sallie Mae's current charter. A Sept. 30 law authorized the privatization.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER