RESTON, Va., March 1 /PRNewswire-FirstCall/ -- In response to proposals
in Washington to cut the private sector student lending program, financial
aid administrators at colleges and universities across the country continue
to voice their support of the Federal Family Education Loan Program
(FFELP). These comments from financial aid officials in support of the
private sector student lending program echo those issued in similar news
releases by Sallie Mae. The FFELP currently serves 80 percent of all
students who borrow to pay for college and plays a crucial role in the
delivery of aid and benefits to students and parents.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a )
Financial aid and school officials continue to speak out in support of
the FFELP and called on Congress to support the private sector:
"The FFELP program is an exceptional example of the way more federal
programs should be administered -- a federal-private partnership. This
partnership has provided countless students the finances necessary to
attain their dreams of higher education...the proposal to offer incentives
to schools that switch from the FFEL Program to the competing Federal
Direct Loan Program in the form of additional Pell Grant funds contradicts
the very foundations of student aid -- providing grant assistance to
students based solely on financial need. The healthy competition which has
existed since 1993 should be fostered."
Gisele Joachim, Assistant Dean of Admissions & Financial Resource
Management
Seton Hall University School of Law
Newark, N.J.
"We all know that the nation's loan providers cannot absorb cuts of
this magnitude without compromising the kinds of benefits and services now
provided to college students and their families. Such cuts could also
stifle the technological innovation and investment that has revolutionized
student aid delivery."
Joyce A. Zaleski, Financial Aid Director
McCann School of Business & Technology
Scranton, Pa.
"My concern is that FFELP will fall by the way-side and Direct
[Lending] will again be an administrative nightmare...we were Direct and it
was a total nightmare to administer and was not at all friendly to the
students...Leave the loan program as is -- FFELP default rates are at a far
better stance than with Direct. After all, capitalism was the best
injection into the loan program."
Melissa M. Moser, Director, Financial Aid
Orange Coast College
Costa Mesa, Calif.
"Prescott College truly relies upon our FFELP lenders to assist us in
making students' dreams a reality. Simply put, the private sector has the
resources to allow us to do well by our students in ways that Direct
Lending cannot."
Terri Eckel, Director of Financial Aid
Prescott College
Prescott, Ariz.
"Giving correct information and processing students' loans as fast and
accurately as possible is my mission. Lenders provide support to the staff
and students. Without this support our school would be forced to increase
staffing resulting in higher tuition and fees which would result in
students borrowing more money."
Rickey L. Eddie, Financial Aid & Scholarship Office
University of North Texas, Dallas
Dallas, Texas
"It is troubling that some leaders in Congress have suggested that the
Federal Family Education Loan Program, the largest and most relied on
source of federal financial aid, could be targeted for cuts. As you know,
Congress slashed $12 billion from the student loan program last year. The
overall effects of these have not yet materialized. Further cuts could
easily destabilize the program and negatively impact the investments made
by private lenders participating in the program."
Steven Jorden, Director, Student Financial Services
A.T. Still University of Health Sciences
Kirksville, Mo.
"My experience working with the FFELP program has been extremely
positive. The superb customer service provided by our lenders certainly
enhances the borrower's experience with the FFELP program. This service
begins when the loan is certified and continues through the repayment
process. I am convinced that the servicing has been instrumental in
maintaining a low cohort default rate."
Penny J. Mitchell, Corporate Director of Financial Aid
American Institute of Technology
Phoenix, Ariz.
"Midstate College elected to stay with the FFEL Program rather than go
to the Direct Loan Program because our students do have the freedom of
lender choice and the benefits to the students during repayment are far
better in the FFEL Program. I believe when lenders compete for their
business, students win."
Janet S. Ozuna, Director of Finance
Midstate College
Peoria, Ill.
To access this news release as well as previous news releases including
higher education institution testimonials in support of the FFELP, please
visit http://www.salliemae.com/about/news_info/newsreleases/.
SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the
nation's leading provider of saving- and paying-for-college programs. The
company manages $142 billion in education loans and serves nearly 10
million student and parent customers. Through its Upromise affiliates, the
company also manages $15 billion in 529 college-savings plans, and assists
more than 7.5 million members with automatic savings through rebates on
everyday purchases. 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
http://www.salliemae.com. SLM Corporation and its subsidiaries are not
sponsored by or agencies of the United States of America.
SOURCE Sallie Mae
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Related links:
http://www.salliemae.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
http://www.prnewswire.com/comp/827187.html/
CONTACT:
Tom Joyce of Sallie Mae, +1-703-984-5610,
tom.joyce@salliemae.com
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