Sallie Mae Deal Called Off in the Face of Subsidy Cuts

By MARTIN VAN DER WERF

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...