January 23, 2008

Sallie Mae Will Quit Making Private Loans to Students With Low Credit Scores

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By KELLY FIELD and PAUL BASKEN

Sallie Mae, the nation's largest student-loan company, has warned colleges it will no longer provide private loans to students with below-prime credit scores.

The company had planned to announce the change today, but it became public after one institution, the for-profit operator Corinthian Colleges Inc., revealed the decision on Tuesday in a regulatory filing.

"They will no longer make private loans available for

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