Sallie Mae commends Rep. Jenkins and Rep. Kind on new bipartisan legislation to help Americans save for college

Category:

Friday, February 11, 2011 8:08 am EST

Dateline:

RESTON, Va.

Public Company Information:

NASDAQ:
SLM
"Savings Enhancement for Education in College Act"

Sallie Mae, the nation’s No. 1 financial services company specializing in education, issued the following statement regarding the introduction of the “Savings Enhancement for Education in College Act” (H.R. 529). The bipartisan bill proposes a new employer-matching program, allows 529 college savings plans to pay for computers for use in college, and provides greater flexibility to manage 529 investments.

Albert L. Lord, vice chairman and CEO, Sallie Mae, said: “Sallie Mae commends Rep. Jenkins and Rep. Kind for their leadership in encouraging more Americans to save for college. Sallie Mae is committed to educating parents of all income levels on how they can save responsibly for this important life investment and to providing the tools to get started. This legislation would make it easier for low- and middle-income families to save for education, especially by expanding existing tax incentives for college savings and encouraging employer-matching programs. We look forward to working with Congress to pass legislation this year that expands college savings and helps more Americans prepare for the careers of tomorrow.”

Sallie Mae’s national study of parents of children ages 18 and under, conducted with Gallup, found that only 24 percent of parents use 529 plans to save for college. Although each state offers 529 college savings plans with low fees and federal tax incentives benefiting all income levels, half of those not currently using one say that they are not at all familiar with 529 plans.

The study also found that an employer-matching program, a key focus of Rep. Jenkins’ and Rep. Kind’s legislation, would be a top motivator for families to use a dedicated college savings plan. In fact, 60 percent of low- and middle- income families reported that an employer-matching program could motivate them to use a 529 or other dedicated college savings vehicles.

Sallie Mae’s subsidiary, Upromise Investments, is the largest administrator of college savings plans, managing $35 billion in 529 assets on behalf of 16 states. Its 529 Works program is one of the only programs in the country that can enable companies to offer employees an automatic payroll deduction to encourage saving for college. More information about 529 plans is available at www.529.com.

Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services company specializing in education. Celebrating 40 years of making a difference, Sallie Mae continues to turn education dreams into reality for American families, today serving 25 million customers. With products and services that include 529 college savings plans, Upromise rewards, scholarship search and planning tools, education loans, insurance, and online banking, Sallie Mae offers solutions that help families save, plan, and pay for college. Sallie Mae also provides financial services to hundreds of college campuses as well as to federal and state governments. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

Contact:

Patricia Nash Christel (302) 283-4076
Deborah Hohler (617) 454-6741