This document is a congressional joint hearing report of a panel discussion exploring issues related to privatization of two government-sponsored entities (GSEs): the Student Loan Marketing Association (Sallie Mae) and the College Construction Loan Insurance Association (Connie Lee). The two issues specifically addressed by the panel were: (1) whether these GSEs were mature enough to make privatization desirable, and (2) what effects privatization might have on their investors. The report includes prepared statements by panel members Darby Bradbury, Department of Treasury, who testified in favor of privatization and also presented some historical background on the Treasury's longstanding relationship with Sallie Mae, and its position on Connie Lee; Lawrence Hough, Student Loan Marketing Association, who also supported privatization; Leo Kornfeld, Department of Education, who raised some special issues relative to privatization of Sallie Mae; and Oliver Sockwell, College Construction Loan Insurance Association, who sought complete privatization of his organization. Included also are statements by panel members Fred Khedouri, of Bear, Stearns & Company, and Robert Torrey; the transcript of the question-and-and-answer session that followed the formal presentation; and statements submitted by other interested parties. (CH)