Sallie Mae to split into 2, names new CEO

Sallie Mae plans to split into two separate, publicly traded companies. The student loan giant also named John Remondi as its chief executive.

Sallie Mae, formally named SLM Corp., said Wednesday that the two separate companies -- an education loan management business and a consumer banking business -- would help unlock value and boost its long-term growth potential.

Sallie Mae anticipates the split, if given final approval by its board, could be completed within 12 months.

Remondi will succeed Albert Lord, who is retiring earlier than initially planned. Remondi has served as president and chief operating officer since 2011 and was chief financial officer and vice chairman before that.

Sallie Mae is based in Newark, Del.