Chapter 14: Indentured Scholars
SLM, commonly known as SallieMae, is the student loan company that benefits from government rules that guarantee some of its loan portfolio and mandate repayment in virtually all cases, even when students graduate into a weak economy with no jobs, are the victim of accident, illness or violent crime or just do not succeed in their careers.
Big lenders who have no such guarantees, and must write-off part of their loan portfolio because not every loan works out, earned an average about a 17 percent return on equity. But for the five years ended 2006, as reporte don Page 154SLM earned three times that much, a 51 percent return on equity.
Here is the company's own report from its 10-K report to shareholders and the Securities and Exchange Commission for the five years 2001 through 2005, the key line below in large boldface type:
(Dollars in millions, except per share amounts)
The following table sets forth selected financial and other operating information of the Company. The selected financial data in the table is derived from the consolidated financial statements of the Company. The data should be read in conjunction with the consolidated financial statements, related notes, and "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" included in this Form 10-K.
