Paper: Sallie Mae Sale Could Result in Breakup of Debt Collection Units

In an attempt to shed some debt-related pounds to pretty itself up for its $25 billion buyout, Sallie Mae could be looking to sell off some of its collection units.  At least, that’s what the Financial Times is suggesting.

The FT, citing “sources familiar with the situation,” says that Sallie Mae could be refocusing on its core competency and businesses “viewed as less core could be candidates for divestiture.”

The FT was quick to add, though, that no decisions had yet been made.

Possibly on the list for divestiture?  The approximately 26-year-old General Revenue Corporation, acquired by SLM in 2002.  The FT’s sources called it “very marketable, as it is one of the largest college-focused collection agencies in the US.”  Ohio-based General Revenue Corporation and Illinois-based Arrow Financial Services are also potential companies on the “bidding block.”

And who might be bidding?  The FT’s sources are speculating about this, too: “Strategics such as Pennsylvania-based NCO Group, Missouri-based Outsourcing Solutions, and Virginia-based Portfolio Recovery Associates.”