Hearings concerning the activities of the Student Loan Marketing Association (Sallie Mae) are presented. Attention is focused on a request for an exemption under federal priority for recovering money owed the Association in the event that it files for liquidation or reorganization in the future under the Bankruptcy Act. It is noted that two goals of the Association are to provide a public service by assuring loan liquidity for student credit demands in the states, and to make a profit. Attention is directed to: the Association's organization, role, and activities; its performance as a quasi-government entity; new expanded authority of the Association to include virtually all functions of the Guaranteed Student Loan Programs, and the question of whether it has an unfair advantage in the marketplace over others that are involved in similar types of activities. Consideration is also given to the Association's direct or indirect responsibility to students and whether this responsibility conflicts with its obligations to its shareholders or bond holders. Publications and information are included on the legislative history of the Association and the probable consequences if the Association is unable to market its debt obligations in the public market. (SW)