Sallie Mae said that it will continue to issue Federal Family Education Loan Program (FFLEP) ABS to finance the redemption of all legacy FFELP loans previously sold into the U.S. Department of Education’s Straight-A conduit program.

The student loan lender said on Wednesday when it reported 4Q 2012 and full year 2012 financial results, that it expects to redeem all of these loans prior to the conduit program’s Jan. 19, 2014 maturity date. At Dec. 31, 2012, the company held $125.6 billion of FFELP loans.

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