Sallie Mae Participates in Lexington Institute Policy Forum on the Future of Student Loans

November 10, 2009 4:14 PM EST

RESTON, Va.--(BUSINESS WIRE)-- 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.

A replay of the Webinar is available at www.visualwebcaster.com/student-loan-policy. Additional information is available on the Lexington Institute's Web site (www.lexingtoninstitute.org). More information about the Community Proposal is available at www.studentloanfacts.org.

SLM Corporation (NYSE:SLM), commonly known as Sallie Mae, is the nation's leading provider of saving, planning and paying for education programs. Through its subsidiaries, the company manages $192 billion in education loans and serves 10 million student and parent customers. Through its Upromise affiliates, the company also manages more than $21 billion in 529 college-savings plans, and is a major, private source of college funding contributions in America with 11 million members and more than $500 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.

    Source: Sallie Mae

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