Increases Pell Grant Funding on Par with Administration's Plan
Enhances Administration's Plan by Avoiding Significant Operational Risks and Assuring Competition and Choice in Marketplace
RESTON, Va., July 7, 2009—Sallie Mae, the nation’s leading saving, planning and paying for education company, today announced its support for the Student Loan Community Proposal to reform the student loan program. Put forward by a diverse coalition that includes non-profit, for-profit, and state-based service providers and guaranty agencies, the alternative proposal enhances the Administration’s plan to better serve students, families, schools, and taxpayers.
The student loan community's plan achieves the two key objectives: It generates the same or greater budget savings as the President’s plan; and the community’s plan avoids the significant transition risks posed by switching loan origination systems on more than $50 billion of private-sector-originated loans at some 5,000 schools.
The proposal offered by the student loan community also assures the choice and competition in the marketplace, which has spurred innovation, superior customer service, and low defaults. It would allow regional and national service providers to continue delivering loans without interruption to the millions of students and families who rely on those loans to achieve their dreams of a higher education.
As this proposal moves forward, Sallie Mae pledges to continue to work constructively with the Administration and Congress to implement the best possible student loan program for students, schools, and taxpayers.
More information on the Student Loan Community Proposal is available at www.studentloanfacts.org.
For more information contact:
Martha Holler (703) 984-5178
SLM Corporation (NYSE:
SLM), commonly known as Sallie Mae, is the nation’s leading saving, planning and paying for education company. Sallie Mae’s saving programs, planning resources and financing options have helped more than 31 million people make the investment in higher education. Through its subsidiaries, the company manages $176 billion in education loans and serves 10 million student and parent customers. In addition, the company’s Upromise program has enabled 11 million members to earn more than $525 million in rewards to help pay for college. Its Upromise affiliates also manage more than $23 billion in 529 college-savings plans. Sallie Mae offers services to a range of institutional clients, including colleges and universities, 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.