RESTON, Va., March 21 /PRNewswire-FirstCall/ -- Financial aid
administrators at colleges and universities across the country continue to
voice their support of the Federal Family Education Loan Program (FFELP).
This public-private student loan partnership 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 administrators have expressed serious concern about
recent proposals in Congress that limit choice and competition in the
student loan program. They also challenge those who question the ethics and
integrity of the financial aid community. These comments from financial aid
officials in support of choice, competition and the private sector student
lending program join a chorus of similar voices that have been raised in
recent weeks. (To access previous news releases with higher education
institution testimonials in support of the FFELP, please visit
http://www.salliemae.com/about/news_info/newsreleases/).
"When compared to the William D. Ford Direct Lending program, the
Federal Family Education Loan Program saves students money through lower
fees (often zero fees) and through interest rate discounts for borrowers
who pay in a timely manner. The FFELP lenders also provide students,
colleges and communities with many related services such as loan
counseling, scholarships, early college awareness programs, etc. In
contrast, the Direct Lending program provides no fee reductions, no
interest rate benefits for students who pay in a timely manner and no
value-added services for the people they serve."
Gregory Becher, Director of Financial Aid
Thomas Aquinas College
Santa Paula, Calif.
"Similar to how Direct Lending offers students a single point of
contact; a well structured FFELP program with a preferred lender also
provides students this luxury, therefore cultivating a relationship between
the borrower and the loan servicer in the student's freshman year ... In my
career as a financial aid administrator, I have been proud to partner with
organizations that help to supplement my efforts to promote financial aid
literacy for my students. Sallie Mae Servicing Corporation has worked
alongside my office in a partnership to educate students and families on
the complexities of loan borrowing and have assisted with directing
students to an online process that is both user friendly and educational."
Kenneth Ferreira, Executive Director of Student Financial Services
Franklin Pierce College
Rindge, NH.
"The competitive environment of having private sector and direct
federal student loans has been beneficial to students ... The conversion to
direct loan programs would involve major institutional investments and
could drastically affect the delivery of service to loan borrowers ...
Institutions can ill-afford to ignore potential grant funds but do not have
the resources necessary to make the required infrastructure changes
necessary to shift to direct lending ... The national and state loan
default rates have continued to decline in large part due to the efforts of
the lending community and the work performed by schools ... There should be
discussions of projected costs to the federal government and to the schools
if all of the loan default prevention measures were to be absorbed."
Albert Barreda, Registrar
University of Texas at Brownsville
Brownsville, Texas
"I am concerned that the healthy competition between the Ford Direct
Loan Program and the Federal Family Education Loan Program (FFELP) which
resulted in a wide variety of repayment incentives and deferment options
may be eliminated if the FFEL Program is placed on an uneven playing field.
I believe that both programs were made better because of the competition
between the two. Schools should continue to have the option to choose the
loan program that best suits their needs and those of their students."
Patricia A. Hladio, Director of Financial Aid
Slippery Rock University
Slippery Rock, Pa.
"The Federal Stafford Loan and Federal Ford Direct Loan programs have
essentially the same terms and conditions ... Different schools have
different student bodies with different needs. Each student within each
school is a unique individual with different values and aspirations.
Establishing one set of federal rules, even though well intentioned, could
jeopardize the continued success of a program that has benefited millions
of people."
Greg Ball, Director of Financial Aid
Chapman University
Orange, Calif.
"The Federal Family Education Loan Program (FFELP) provides student
loan financing for students and families thus creating the opportunity for
millions of Americans to pursue their educational goals and dreams ... At
the community college level, opportunity, access, and affordability have
always been our goals and student loan financing has been a large part of
this endeavor. Direct lending, while instituted over 12 years ago, has not
been the answer. The FFELP program clearly provides the best choice for
students and parents making higher education accessible and affordable."
Michael J. Macon, Vice President of Enrollment Management
Community College of Beaver County
Monaca, Pa.
"Students and parents have come to trust the financial aid staff who
provides them with the best information available to assist them in the
financial aid process ... . I do believe it is the borrower's right to
choose his or her lender, and the school should not cause unnecessary
processing delays for those that do not choose a recommended or selected
lender ... In the United States, innovation and improvements have come from
the private sector, not the government sector. If the ability for colleges
to use what can be developed by the private sector is removed, financial
aid processing will not improve."
Wendell Schick, Financial Aid Director
University of Northwestern Ohio
Lima, Ohio
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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