Dodge & Cox reveals 10.5 pct stake in Sallie Mae

WASHINGTON (Reuters) - Dodge & Cox on Friday disclosed a 10.5 percent passive stake in the common stock of Sallie Mae (SLM.N: Quote, Profile, Research), the largest U.S. student loan company.

The fund reported in a filing with the U.S. Securities and Exchange Commission that it owns 48.94 million shares. It did not reveal additional details, such as when it acquired the stake or the purpose behind the acquisition.

Sallie Mae said last month that it cannot continue lending at a profit amid the credit crunch, reflecting the turmoil in the $85 billion student loan industry.

On Wednesday, President George W. Bush signed into law a program to stabilize the industry by temporarily allowing the U.S. Education Department to pump government money into the sluggish secondary market for securities backed by student loans.

(Reporting by Karey Wutkowski; editing by John Wallace)