Sallie Mae participates in Lexington Institute policy forum on the future of student loans
RESTON, Va., At today’s Lexington Institute policy forum on the future of the federal student loan program, Sallie Mae Vice Chairman & CFO Jack Remondi reiterated the company’s support for reforming the program and making college more affordable. He also noted that Sallie Mae remains committed to “doing everything possible” to ensure that the company continues to meet the federal student loan needs of every student at every school through June 30, 2010 and beyond.
When discussing the reform alternative backed by 30 industry participants, Remondi noted that the Community Proposal is the only proposal that creates savings for additional Pell Grants in the 2010/2011 academic year as any delay in implementation of the Administration’s proposal jeopardizes up to $10 billion in savings. Forum panelists, including advocates of the Administration’s proposal, agreed that pressure being placed on schools to transition now to the Direct Loan Program is driven by concern that delayed enactment or implementation of the Administration’s proposal puts the estimated taxpayer savings and proposed Pell Grant increases at risk.
Remondi highlighted that the sole issue in the debate over the future of the federal student loan program is whom taxpayers should hire to deliver and service loans to students and parents: an open marketplace where many entities compete for business, or the Department of Education. When considering that choice, he asked students, schools, taxpayers and lawmakers to consider who will deliver a better service with more features, who will work harder to meet students’ and schools’ changing needs, and who will better manage the expected $1 trillion in student loans that will be made over the next 10 years.
Remondi also emphasized that the Community Proposal produces $87 billion in mandatory savings and avoids transition risk for millions of students and thousands of schools.
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