Source: Http:financeequityloans.comCategory: Student LoansArticle Body: There Are A Number Of Odd Sounding Entities In The World Of Finance Ranging From Fannie Mae To Freddie Mac. What Exactly These Entities Are Is Often Difficult To Figure Out At First Blush. In This Article, We Take A Look At The Behemoth Of The Student Loan Industry Known As Sallie Mae.If You Have Even Considered Financing Your Education, The Name Sallie Mae Has Passed By At Some Point. It Is The Dominant Player When It Comes To The Student Loan Market. It Issues, Administers, Buys And Consolidates Student Loans, Which Means It Is The Only Company That Effectively Has Its Metaphorical Fingers In The Student Loan Market At Every Point. This Was Not Always The Case.Sallie Mae Was Created By The Federal Government In 1972 To Make Sure People Could Get Student Loans. Much Like Fannie Mae In The Housing Market, This Was Accomplished By Guaranteeing The Debt To The Bank On The Student's Behalf. It Was A Simple Role That Worked Fairly Well For Years.In 1997, Sallie Mae Went Private. Well, It Tried. As A Huge Government Created Entity, The Administrative Mess Was Such That The Process Wasn't Completed Until 2004. Yes, It Took Seven Years Although One Has To Admit This Slow Rollout Was Planned For.After Going Private, Sallie Mae Began To Aggressively Move Further Into The Student Loan Market. It Now Issues And Administers Both Government And Private Loans. It Also Handles 529 Plans, Which Are Tax Incentive Savings Plans Parents Can Use To Save Money Up For Their Child's College Education. This Program Is So Big That Sallie Mae Manages Roughly 19 Billion Dollars Held In Total In These Plans. With 8,500 Employees, Sallie Mae Is A Major Employer In The Wilkes-Barre, Pennsylvania Area Where It Is Headquartered.The Modern Role Of Sallie Mae Is One That Raises Some Serious Questions. The Move From A Benign Government Behemoth To A Privatized For-profit Behemoth Has Not Always Been Smooth. In 2007, For Example, The Company Agreed To Pay 2 Million To Settle An Unfair Business Practice Claim. The Problem? Sallie Mae Was Alleged To Be Buying Off College Administrators Who Would Direct Students And Loans To Sallie Mae In Exchange For Monetary Or Other Perks. In Short, Sallie Mae Was Acting Like An Unethical Company!The Real Question Many Private Student Loan Companies Have Is Why Sallie Mae Should Be In The Position It Is. It Was Grown By The Government Into A Behemoth And Then Set Free In The Market Place To Stomp Competitors Into The Ground In Many Cases. This Seems Inherently Unfair.If You Are Looking For Financing, Sallie Mae Is Certainly One Of The Companies That Can Get You The Money You Need To Get Through School. Just Keep In Mind It Is No Longer A Benevolent Government Entity. It Is Focused On Making A Profit And Will Treat You Accordingly.
