To prohibit the Student Loan Marketing Association from conditioning the waiver of redemption premiums, otherwise chargeable in connection with the refinancing of securities acquired by the Association while it was a government-sponsored enterprise, on the use of its own investment banking subsidiary.

Prohibits a current practice of the Student Loan Marketing Association (Sallie Mae) with respect to tax-exempt municipal bonds issued by various educational institutions and acquired by Sallie Mae, before January 1, 1997, as a government-sponsored enterprise. Prohibits Sallie Mae, or any other entity obtaining securities from Sallie Mae pursuant to a restructuring of the common stock ownership of Sallie Mae under the Higher Education Act of 1965 (HEA), from conditioning its waiver of redemption premiums (otherwise chargeable in connection with refunding such bonds) on the use by such educational institutions of its own investment banking subsidiary (Educational Securities, Inc.). (Such practice is currently allowed under HEA.)