Sallie Mae is tightening its belt and will "no longer provide loans to students with sub-prime credit scores." (Source: collegiatetimes.com)
"As a result of the impact of the College Cost Reduction and Access Act and the deterioration of the credit markets, Sallie Mae is discontinuing certain non-standard private education loan programs," said Tom Joyce, senior vice president of Sallie Mae's corporate communications.
"We are also in the process of adjusting our underwriting criteria and pricing of our private education loans to reflect the current financing and market conditions."
Sallie Mae is also laying off 350 people (3% of their workforce) and looking to reduce their costs by 20% in the next two years.
