Government-Sponsored Enterprises and Their Implicit Federal Subsidy
GovernmentSponsored Enterpriks and Their Implicit Federal Subsi*: The Case of Sallie Mae GOVERNMENT-SPONSORED ENTERPRISES AND THEIR IMPLICIT FEDERAL SUBSIDY: THE CASE OF SALLIE MAE The Congress of the United States Congressional Budget Office PREFACE This report on the Student Loan Marketing Association (Sallie Mae) is part of an ongoing study of government-sponsored enterprises (GSEs). The Con- gressional Budget Office undertook the study at the request of the Senate Budget Committee and the Subcommittee on Federal Credit Programs of the Senate Banking Committee. Government-sponsored enterprises include, in addition to the Student Loan Marketing Association, the Federal National Mortgage Association, the Farm Credit Banks, the Federal Home Loan Mortgage Corporation, and the Federal Home Loan Banks. Although the emphasis in this report is on Sallie Mae, the analysis is applicable to the other sponsored enterprises. In keeping with CBO's mandate to provide ob- jective analysis, the paper offers no recommendations. This paper was prepared by Marvin Phaup of.the Budget Process Unit under the supervision of Richard P. Emery, Jr. A significant contribution to the study was made by Robert W. Hartman, Senior Analyst for Budget Pro- cess. Useful comments and suggestions were also made by Ron Boster, Jim Carr, Samuel Chase, Barry L. Cooper, Alfred B. Fitt, Ray Garea, Janet Hansen, Carol Hartwell, Timothy Howard, Ronald F. Hunt, Jan Lilja, Fred- erick C. Meltzer, Carl Mintz, William Schmidt, Robin Seiler, Kevin E. Villani, and Dan A. Woods. CBO analysts Deborah Kalcevic, Maureen McLaughlin, Roy Meyers, Mitchell Mutnick, Pearl Richardson, and Mark Weatherly also contributed to the paper.
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