In a move that has been expected for the past three years, Sallie Mae has completed its transition out of GSE status to become a non-government entity. The move was originally slated for completion in September 2008, but the hyperactive ABS market of the past few years enabled Sallie Mae to finish the job early.

In a market with seemingly endless demand for ABS, Sallie Mae was able to generate enough capital through securitization to repurchase $1.7 billion of its debt and retire its GSE charter. Analysts estimate Sallie Mae's ABS issuance to decline anywhere from $5 billion to $10 billion from its 2004 total of nearly $27 billion, but most market participants agree the effects of that decline will be relatively minimal.

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