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Sallie Mae Socked

Bush proposes cuts in a student lending program.

Sallie Mae (SLM) - Get SLM Corp Report sank 9% after President Bush proposed a 2007 federal budget that would cut government support for student lending programs.

"The cuts proposed today by the president to the private-sector student lending program, which currently serves 80% of all student borrowers, would have far-reaching consequences for students and taxpayers," the Reston, Va., company said."These harmful cuts would result in substantially fewer lenders participating in the program, reduced competition, and move us closer to a government-run student loan monopoly in the Direct Lending program, supported by an enormous federal government bureaucracy."

Shares fell $4.02 to $44.70.

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