Prior to July 31, 2000, USA Funds^® was an affiliate of USA Group. USA Funds contracted with other USA Group affiliates to deliver key services, including information-technology support, loan-guarantee processing, loan-status maintenance, customer service, default prevention, default recovery, sales and marketing.

Effective July 31, 2000, Sallie Mae acquired the assets of most of the USA Group affiliates. USA Funds, however, was not included in the transaction. USA Funds became an independent, unaffiliated guarantor of student loans. USA Funds contracts with Sallie Mae affiliates, much as it previously had contracted with USA Group affiliates, for services necessary to carry out its role as a student-loan guarantor. In fact, many of the people and processes that supported USA Funds when it was part of USA Group continue to support USA Funds under USA Funds' contracts with Sallie Mae affiliates.

USA Funds is not a subsidiary of Sallie Mae. There is no corporate affiliation between the two organizations. USA Funds is governed by a board of trustees that is completely independent of the board that governs Sallie Mae. USA Funds is managed by an experienced team of individuals who have no affiliation with Sallie Mae. The services that USA Funds receives from Sallie Mae are closely monitored and directed by USA Funds employees.

Furthermore, USA Funds works with hundreds of education lenders. Some of these lenders contract with Sallie Mae for servicing and loan acquisition; others have no contractual relationships with Sallie Mae. Postsecondary institutions, their students and parents are free to choose the lenders with which they wish to work while using the USA Funds guarantee.