Struggling Sallie Mae Turns to Private Loans and Stock Sale

December 28, 2007

By JOHN HECHINGER – Wall Street Journal
SLM Corp. cited potentially grim prospects for its main federally guaranteed student-loan business, and indicated it was accelerating its push into private loans that aren’t backed by the U.S. government.The biggest student lender, commonly known as Sallie Mae, also said that it faced a federal inquiry into its billing practices for high-return loans and a recent lawsuit from customers alleging racial discrimination. Read more