Financial Aid Officials Continue to Call on Congress to Support the FFELP

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.

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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 , 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.