Sallie Mae Split Marks Bet on Abused Private Student Loans
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Sallie Mae, the largest U.S. education-finance company, is making a bet on the future of private student debt, a business under fire in Washington for marketing high-interest-rate loans before the financial crisis.
Officially known as SLM Corp., Sallie Mae said this week it will separate into two publicly traded companies. One will focus on servicing federal student loans; the other will concentrate on the fast-growing business of making private loans.