Financial Dictionary
Student Loan Marketing Association
- A subsidiary of privately owned USA Education that provides a secondary market in student loans, the majority of which are government guaranteed. This organization, popularly known as Sallie Mae, was the first government-sponsored enterprise to be transformed into a private company. As such, the firm lost the implied government backing of its debt that is enjoyed by Fannie Mae and Freddie Mac. USA Education is also the parent company of Nellie Mae, a major provider of higher education loans for students and parents.
