Sallie Mae, the largest U.S. education-finance company, is making a bet on the future of private student debt, a business under fire in Washington for marketing high-interest-rate loans before the financial crisis.
SLM Corp. dealt bondholders a blow as the student loan company prepares to move cash-generating assets out of their reach and rely more heavily on secured funding as it seeks to split into two separate entities.
The U.S. Congress gave final approval yesterday to a bill that pegs interest on government-sponsored student borrowing to a market-based rate, ensuring that almost 9 million undergraduates will pay 3.86 percent on their next loan.
SLM Corp., the student lender known as Sallie Mae, is seeking to separate its education loan management and consumer bank businesses into two publicly traded entities. Its bonds fell the most in at least four months.
SLM Corp., the student lender known as Sallie Mae, is boosting its asset-backed issuance as demand surges with interest rates holding close to zero into a fifth year, according to Chief Executive Officer Albert Lord.
U.S. stocks rose, sending benchmark indexes to records, as earnings from Morgan Stanley and UnitedHealth Group Inc. beat estimates and jobless claims fell amid testimony from Federal Reserve Chairman Ben S. Bernanke.