At yesterday’s Keefe, Bruyette & Woods 2009 Diversified Financials
Conference, Sallie Mae Vice Chairman & CEO Albert L. (Al) Lord
emphasized Sallie Mae’s support of President Obama’s objectives of
generating an historic level of federal budget savings by reforming the
federal student loan programs and increasing Pell Grants for students.
Discussing suggested enhancements to the Administration’s proposal, Mr.
Lord highlighted:
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ensuring competition among numerous originators and servicers,
including smaller, regional, state and non-profit providers,
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requiring servicers to share in the risk of loan default, and
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eliminating the transition risk for colleges and universities at a
time of severe budget constraints.
Mr. Lord emphasized Sallie Mae’s efforts to work constructively with the
Administration and Congress and re-iterated the company’s support of the
key components of the Administration’s plan: leveraging federal funding
for student loans to create savings, increasing Pell Grants with the
proceeds of those savings, and utilizing private sector competition to
produce high-quality loan services.
With regard to the importance of broad competition in loan delivery to
students and schools, Mr. Lord stated, “We don't see any need to limit
the number of players who originate and service loans, so long as they
compete, provide quality service and deliver the savings.”
SLM Corporation (NYSE:SLM), commonly known as Sallie Mae, is the
nation’s leading provider of saving- and paying-for-college programs.
Through its subsidiaries, the company manages $185 billion in education
loans and has 10 million student and parent customers. Through its
Upromise affiliates, the company also manages $17 billion in 529
college-savings plans, and is a major, private source of college funding
contributions in America with 10 million members and more than $475
million in member rewards. Sallie Mae and its subsidiaries offer debt
management services as well as business and technical products to a
range of business clients, including higher education institutions,
student loan guarantors and state and federal agencies. More information
is available at www.salliemae.com.
SLM Corporation and its subsidiaries are not sponsored by or agencies of
the United States of America.
Sallie Mae
Media:
Martha Holler, +1-703-984-5178
Martha.holler@salliemae.com
or
Investors:
Steve
McGarry, +1-703-984-6746
steven.j.mcgarry@salliemae.com
