Navient, its former FFELP business, has a tougher future to grapple with, but will likely evolve as a general servicer of student loans.With any luck, the government will hire it for servicing, and firms like Sallie Mae will likely turn to it for help servicing their private loans.Currently, Sallie Mae estimates it services around 13 million customers.While no longer allowed to originate federal student loans, Sallie Mae plans to survive in the private loan market.SLM Corporation (SLM), more commonly known as Sallie Mae, is a public corporation and a private-sector lender, so its direct loans are not federal loans.Basically, federal student loans consist of funds that are provided by the U. government, while private student loans come from entities such as banks and other financial institutions.However, private entities often work as loan servicers for certain federal loans on behalf of the government.
At its beginnings in 1972, Sallie Mae operated as the Student Loan Marketing Association – and it federally chartered, government-sponsored enterprise.
Finally, it then helps them bridge any remaining needs with the private education loans it offers.
It also offers info on loan repayment programs, both federal and private.
First, it helps them to explore using scholarships and existing savings to fund education costs.
It then helps them investigate government-backed loans, even though it doesn’t help originate them.
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