Sallie Mae Activities

Pursuant to a congressional request, GAO reviewed the activities of the Student Loan Marketing Association (Sallie Mae), focusing on Sallie Mae's participation in the CollegeCredit program. GAO noted that: (1) the program makes financial aid available to eligible borrowers; (2) Sallie Mae's role in the CollegeCredit program was consistent with its statutory authority; (3) Sallie Mae's principal activities included buying and servicing guaranteed student loans as a secondary lender and servicing loans made and retained by other organizations and lending institutions; and (4) Sallie Mae did not directly distribute funds to borrowers under the program.