October 5, 2007
Sallie Mae Deal Called Off in the Face of Subsidy Cuts
A $25-billion takeover of Sallie Mae that was announced in April was called off last week, the victim of a new law that will cut federal subsidies to student-loan providers.
President Bush signed the law, the College Cost Reduction and Access Act of 2007 (HR 2669), last week. Among other things, the law will cut subsidies to for-profit lenders by 0.55 percent. It is the second cut in federal subsidies to student lenders in the last two years.
Wall Street had been hinting in
This is an article for subscribers only. You may access this article by purchasing a:
Digital or Print Subscription
Web Pass
Already have an account? Log In Now.
-
Off Beat
-
The Chronicle Review
-
Administration
