Friday, June 5, 2009

Sallie Mae CEO Emphasizes Company’s Full Support of Generating Historic Savings for Pell Grants

(BUSINESS WIRE)--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:

* ensuring competition among numerous originators and servicers, including smaller, regional, state and non-profit providers,
* requiring servicers to share in the risk of loan default, and
* 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.”

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