The Student Loan Marketing Association ("Sallie Mae") is a government sponsored, private, for profit corporation, created in June 23, 1972, by the enactment of Section 439 of the Higher Education Act of 1965, as amended. Sallie Mae provides liquidity to commercial banks, savings and loan associations, mutual savings banks, credit unions, postsecondary educational institutions, and other lenders in the Guaranteed Student Loan Program (GSLP). Sallie Mae's purpose is to increase the amount of funds these lenders will have available for loans under GSLP. The document is the second annual report of Sallie Mae. After a brief overview of the organization, the document provides information concerning: the board of directors; management; program administration, including Warehouse Advance Program and Loan Purchase Program; impact of Sallie Mae Programs; financing; summary; financial statements; and an appendix that includes legislative and presidential determination. (Author/KE)