Sallie Mae completes purchase of Upromise

By Jeremy M. Simon

Sallie Mae announced on Aug. 23, 2006, that it has completed its acquisition of Upromise.  The deal joined the nation's top paying-for-college company with the top saving-for-college company and brought two new business lines to Sallie Mae while adding millions to its customer base.

As the leading U.S. education finance company, Sallie Mae has 10 million borrowing customers and manages $127 billion in student loans.

Meanwhile, Upromise has over 7 million members who have joined what is one of the largest marketing services coalitions in the U.S. in order to earn cash rewards when they and their families purchase gas or groceries, dine out or buy other goods and services from more than 450 participating companies. Members can then invest their rewards and personal savings in 529 college savings plans.

Upromise is the leading administrator of direct-to-consumer 529 college savings plans, administering almost 1 million college savings accounts and managing $11 billion in assets with tax-advantaged 529 investment options through partnerships with seven states.

Launched five years ago, Upromise's partner companies include such corporate giants as McDonald's, Coca-Cola and ExxonMobil.

Additionally, the company offers a Upromise credit card, which is featured on CreditCards.com and allows parents to save for a child's college education by leveraging everyday credit card purchases to earn rewards.

Published: October 25, 2006

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