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U.S. Student Lender Sallie Mae Plans Loan Cuts
Sallie Mae, based in Reston, Virginia, also said it is trying to refinance a $30 billion asset-backed commercial paper facility, following the collapse of a $25 billion buyout by a consortium led by private equity firm J.C. Flowers & Co. It said that the facility terminates on May 16, but that funding costs will increase "substantially" if it cannot refinance the facility by February 15. Sallie Mae, nevertheless, said it expects "to partially offset declining loan volumes caused by our more selective lending policies with increased market share taken from participants exiting the industry."