RESTON, Va.-Sallie Mae, the largest provider of guaranteed student loans, said it endorses the Obama administration's proposal to eliminate all guaranteed student loans and the elimination of lender subsidies.
But the company, which services more than $175 billion of student loans, said it hopes the proposed reforms to the government's student loan program will preserve private sector servicing and default prevention programs.
Sallie Mae said its position on loan reform has been "clear and consistent with the key elements of the Obama Administration's plan," specifically, government ownership of all federal student loans and elimination of lender subsidies. "We recognize that the federal government can finance these loans least expensively and generate taxpayer savings by owning these assets to term," said the company in a statement.
"We believe, however, that the president's proposal could be enhanced in a way that preserves private sector competition and default prevention services for students, saves the jobs for American workers now performing these services and generates $83 billion of taxpayer savings, according to the Congressional Budget Office."
