Sallie Mae Completes Acquisition of Upromise

SLM Corporation, commonly known as Sallie Mae and the nation’s leading paying-for-college company, today announced that it has completed the purchase of Upromise, Inc. and its family of companies. Sallie Mae announced in June its plans to purchase Upromise, the nation’s leading saving-for-college company and administrator of 529 college savings plans.

With the closing of the transaction, Upromise will become a subsidiary of SLM Corporation and will retain its brand and business focus. Together, Sallie Mae and Upromise will offer parents and students a comprehensive financial solution to access college — including a broad range of college savings vehicles, information, and student loans.

“We are excited to help families save and pay for college through our partnership with Upromise,” said Tim Fitzpatrick, CEO, Sallie Mae. “This transaction advances our mission to increase access to higher education and to educate students and families on how best to meet college costs.”

The transaction brings two new business lines to Sallie Mae and adds millions to its customer base. Launched in 2001, Upromise has more than 7 million members and is one of the largest marketing services coalitions in the U.S. With Upromise, members can earn cash rewards on their everyday spending at over 70,000 stores and service locations, involve their family and friends to help save, and invest their rewards and personal savings in 529 college savings plans. Upromise also administers tax-advantaged 529 college savings accounts for 1 million investors and manages $11 billion in 529-plan assets in partnership with seven states.

Tom Anderson, CEO of Upromise, will continue to lead the growing organization, which currently employs more than 300 individuals in Needham, Mass.