Sallie Mae Names Education Unit Navient as Lender Splits in Two

The new business housing SLM Corp. (SLM)’s legacy student loan portfolio will be called Navient, the company said in a statement.

SLM, known as Sallie Mae, is remaking its business after legislation passed in 2010 cut private lenders out of the market for government-guaranteed debt. The lender is splitting into two firms, creating a separate company to originate private education debt. The Newark, Delaware-based company plans to provide $4 billion in new loans this year.

“Sallie Mae has a long history of remaking itself to fit the times,” Chief Executive Officer Jack Remondi said in an interview yesterday. “This is the next chapter of our life.”

Navient will service about $300 billion in student loans, according to the statement. The company will trade under the ticker symbol NAVI on the Nasdaq Stock Market.

To contact the reporter on this story: Sarah Mulholland in New York at smulholland3@bloomberg.net

To contact the editor responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.