Lending and secondary market activities of the Student Loan Marketing Association (Sallie Mae) since it began operations in 1973 were reviewed. Specific areas of review were: the Association's legislative development and financial activities, its profitability compared to commercial banks and other government-sponsored enterprises that provide lending and secondary market services to other programs, its financing activities with investment firm representatives, and its role in the student loan program. Findings include the following: the Association's return on equity has been relatively high; it has invested most of its profits in the student loan programs; and, in comparison to the practices of most of the other organizations discussed, it has distributed relatively little as dividends to stockholders. During 1974-1981, the Association financed its activities primarily by borrowing needed funds from the Federal Financing Bank. Since then, the Association has obtained its financing exclusively in the private capital markets. This borrowing has been used to increase its secondary market activities, as shown by the increase in outstanding student loans and warehousing advances held by the Association. (SW)