Sallie Mae, the country’s largest holder of student loans, is talking with private-equity investors about a possible buyout of the lender that could be worth more than $20-billion, The New York Times reported this morning, citing unnamed people who had been “briefed on the discussions.”

The Times said the negotiations seemed to be at “a late stage,” but it was unclear if a deal was inevitable. Sallie Mae did not comment to the Times.

The investors may see Sallie Mae as undervalued because, despite its dominance in the student-loan industry, its profitability may be threatened by billions of dollars in cuts to the federal subsidies provided to lenders in the guaranteed-loan program. Its stock price has declined sharply in recent months.

Sallie Mae also has been swept up in the controversy over cozy ties between lenders and student-aid officials at colleges. On Wednesday it signed a settlement with the New York attorney general in which it agreed to pay $2-million and stop a series of practices that have helped make it a lending giant. The controversy could lead to a nationwide tightening of regulation and oversight of the industry. —Andrew Mytelka

[See an update on this report.]