The Privatization of Sallie Mae and its Consequences

Public Policy Implications The paper recommends reforms for thefederal student loan market• It is too late to look at the unusual marketstructure created by government and Sallie Mae’sGSE status; privatization is complete• The government should look at market issuesrelating to federal guaranteed loan programs,e.g., need to diversify program risk• The government should look at consumer issuesrelating to federal guaranteed loan programs16