Sallie's First-Quarter Loss Narrowed
Sallie Mae reported a narrower loss of $21.1 million for the first three months of the year as the nation's largest student lender continued to struggle in the midst of the ongoing credit crunch and economic downturn.
Sallie, formally known as SLM Corp., makes both private student loans and those that are backed by the federal government. The Reston company then takes the loans, pools them into securities and sells them to investors -- a model that has increasingly been thrown into disarray as lending sources have dried up and fewer investors are willing to buy such securities.
The Obama administration has also recently proposed sweeping changes to the decades-old approach of providing federal subsides to private loan companies such as Sallie, which would fundamentally alter the way the student lender does business.
Sallie Mae's first-quarter loss of $21.1 million, or 10 cents per share, compared with a loss of $103.9 million, or 28 cents per share, in the first quarter of 2008.
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