Sallie Mae 2004 Annual Report Download - page 5

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In 2004, we successfully finalized one of the most significant
chapters to date: completing the transition from a government-
sponsored enterprise to a fully privatized company.
Edward A. Fox
CHAIRMAN OF THE BOARD
LETTER FROM THE CHAIRMAN
It is with a mixture of nostalgia for the past and anticipa-
tion for what is yet to come that I write my final Chairman’s
letter for Sallie Mae. In May, I will officially retire from the
Board position I have held since 1997.
Since walking into a small office on K Street in
Washington, D.C., as Sallie Mae’s first employee in 1973, I
have enjoyed watching Sallie Mae’s unique story unfold.
With a single plot line, but multiple twists and turns, Sallie
Mae’s narrative has been remarkable. It is with great pride
that in 2004, we successfully finalized one of the most signif-
icant chapters to date: completing the transition from a gov-
ernment-sponsored enterprise to a fully privatized company.
Achieving this milestone certainly stands out as a career
highlight for all of us who have worked at Sallie Mae. To
complete this privatization—and to do so nearly four full
years ahead of schedule—is testament to the company’s
sound business model and to the success of the public-pri-
vate partnership that supports the country’s federal student
loan program. Sallie Mae not only has fulfilled its original
mission of creating a vibrant secondary market for student
loans but also launched a loan origination business, devel-
oped key ways to support the major participants in the stu-
dent loan industry with a variety of financial and technology
services and prospered without government support. We
are pleased that this transition has been to the benefit of
our customers, underscoring the strength of Sallie Mae’s
service orientation. As a result, we have reached the fron-
tier of new possibilities and find ourselves with much
greater freedom in all segments of our business.
Much has changed since my first years with Sallie Mae.
Indeed, the Sallie Mae of today scarcely resembles the
Sallie Mae that I joined more than 32 years ago. The com-
pany has gradually created a presence in
every step of the
student loan life cycle. No longer just a wholesale buyer of
student loans, Sallie Mae is now a retail service provider to
schools and borrowers. In short, Sallie Mae truly is the
author of its own story now.
Of course, the ultimate benefactors of the government’s
foresight and Sallie Mae’s successful transformation are
students, schools and taxpayers. Students have access to
private capital to finance their college education. College
and university financial aid professionals have access to
enhanced technology, services and loan products that sim-
plify the financial aid process. Shareholders have ownership
of a company with a sound growth proposition and a
demonstrated ability to create value. And, finally, taxpayers
are no longer responsible for the implied federal support of
a student loan government-sponsored enterprise.
The past 12 months firmly set the stage for the next
chapter in our story. It is with great confidence and satis-
faction that I leave my position as Chairman. Sallie Mae has
indeed been a great place to work. Thank you for the
opportunity to serve.
EDWARD A. FOX
CHAIRMAN OF THE BOARD