Should schools be concerned that Sallie Mae will suddenly exit the federally guaranteed student loan marketplace?

Sallie Mae's commitment to student lending is steadfast. Although other FFELP lenders have left the business or have become school-selective, we have funded every FFELP application we have received, including those from schools that have already announced that they will transition to the Direct Lending program. While the funding solution currently in play is a short-term one, we believe market conditions will improve over the next 12 months.

In the meantime, we will continue to work with the higher education community and those in Washington to ensure FFELP remains strong and works as it was intended when enacted as part of President's Johnson's Great Society in 1965. At the same time, we will continue to make federal loans to any student, at any school through academic year 2008–09 (i.e. , through June 30, 2009).

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