Student Loan Company Sallie Mae to Split in Two

Consumer banking to be separated from education loan management

Student loan provider Sallie Mae said it will split the company into two publicly traded entities and named John Remondi as its chief executive officer.

Sallie Mae, the largest U.S. student lender, said it plans to separate its consumer banking business from the larger education loan management business as part of a plan to unlock value and enhance long-term growth potential.

The company, which trades under the formal name of SLM Corp., said the split will be undertaken through a tax-free distribution of common stock to its shareholders.