Student Loan Marketing Association (SLMA)

A publicly traded corporation established by federal action that increases availability of educational loans by guaranteeing student loans traded in the secondary market. Also known as Sallie Mae.

Sallie Mae

The Student Loan Marketing Association (SLMA). A publicly-traded company chartered by the U.S. Congress to guarantee student loans and to provide a secondary market for student loans made by other lenders. In order to do this, it buys student loans and repackages them, selling them as short-term and medium-term debt obligations. Sallie Mae also provides other services, such as debt management, to students, universities, and businesses. It was established as a government-sponsored enterprise in 1972, but ended its federal charter in 2004. See also: Farmer Mac, Fannie Mae, Freddie Mac.

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.

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Student Loan Marketing Association

See Sallie Mae.