Sallie Mae Buys Upromise

Sallie Mae announced that it has signed an agreement to purchase Upromise. Sallie Mae services more than 10 million customers totaling US$130 billion in loans. Upromise launched in 2001 and has grown into one of the largest direct marketing companies for the popular 529 college savings plan. Currently, it administers more than 1 million plans with total asset value of more than US$10 billion in seven states. According to the release, "Sallie Mae and Upromise will offer parents and students a comprehensive financial package to access college — including a broad range of investment options, financial aid information, college savings and student loan solutions."

Upromise also has a large merchant base including 20,000 grocery and drug stores, 10,000 hotels, 8,000 restaurants and several hundred national companies. Consumers can receive rebates in the form of college savings ranging from 1 percent to 10 percent on select items and services by registering credit cards with Upromise (participating companies).