Sallie Mae Lending Will Continue

SLM Corp. said it will continue to make federally guaranteed student loans, ending fears the nation's largest student lender, by dollar amount, might join the recent exodus from a market that has been rocked by the credit crisis.

The announcement by SLM, commonly known as Sallie Mae, comes a day after the Bush administration said it will use U.S. Treasury funds to buy loans from lenders and invest in special loan-backed trusts.

In a teleconference with college administrators Wednesday, Albert Lord, Sallie Mae's chief executive officer, called the administration's plan "practical, workable ...