Student Lenders Like Sallie Mae Avoid Setback

Companies that extend private loans to students will continue to be able to do so without needing schools' confirmation that the students have exhausted all other aid options, after the U.S. Senate shot down a House proposal that would tighten certification requirements. The Senate decision could be considered a win for industry giant SLM Corp. (SLM), which originated $840 million in private loans in the first quarter. That company, commonly known as Sallie Mae, is expected to rely more on its private-loan business now that the government took federal loan originations in-house, eliminating a major revenue source from third-party lenders.

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