Sallie Mae CFO says size matters in tough times | Reuters
Because of the company's size -- it manages nearly $172 billion in loans -- the regulation "works better for us than probably anyone else" he added.
The Department of Education funding is for government guaranteed loans. Sallie Mae also makes student loans that are not government guaranteed, known as "private" loans, which tend to be more profitable.
"Even if (Sallie Mae) couldn't make another private credit loan because of credit market conditions, this company has a viable business model that's profitable and sustainable," he said.
So Sallie Mae looks stable in this financial mess because of the fact it's backed by gov't and it's not involved in the subprime mortgages that embroiled Fannie and Freddie. But is there any possibility we could see a change in the way student loans are handed out in the near future?