Home / Business and Economy / Sallie Mae Inks Landmark $6B Deal with Private Equity Firm KKR
Sallie Mae Inks Landmark $6B Deal with Private Equity Firm KKR
13 Nov
Summary
- Sallie Mae partners with KKR to sell $6B+ in student loans
- Deal aims to expand Sallie Mae's loan origination capacity
- Comes as federal government scales back student loan operations
In a significant move, Sallie Mae, the leading private student lender in the United States, has announced a multi-year partnership with the global private equity firm KKR. As per the deal, KKR will purchase more than $6 billion in student loans from Sallie Mae over the next three years.
The arrangement is designed to bolster Sallie Mae's capacity for originating new loans and serving more students. Sallie Mae CEO Jon Witter expressed excitement about the "first-of-its-kind deal" and the potential to grow this into a new business.
The partnership comes at a time when the federal government is poised to scale back its involvement in the student loan industry. Recent legislation, such as the One Big Beautiful Bill Act, has introduced changes that are expected to open up new opportunities for private lenders like Sallie Mae.
Sallie Mae, which manages $29.6 billion in total assets, is the largest private provider of student loans in the United States. The company's collaboration with KKR, the world's biggest private equity firm, is a strategic move to capitalize on the evolving student loan landscape.
