Jan. 10, 2008
To Our Valued School Customers:
There have been several recent reports about Sallie Mae, the credit markets and the intersection of those two topics. I am writing to set the record straight.
Sallie Mae is the number one provider of federal student loans, the number one provider of private student loans, and the number one servicer of Federal Family Education Loan Program (FFELP) loans. For 35 years, our mission has been to make education accessible and affordable for students at all times of their lives. We remain committed to that mission.
We are a sound financial company, with a future as strong and bright as our 35-year history. The appointments of a new Chairman of our Board of Directors, Anthony P. Terracciano, and Vice Chairman and CFO Jack Remondi add further talent to our management team and position Sallie Mae for growth.
All financial service companies, including student loan providers, are experiencing tighter credit markets as a result of the sub-prime mortgage crisis. The status of today’s credit markets has limited the capacity not only of Sallie Mae, but also of all student lenders to fund both FFELP and private loans. This has led to higher borrowing costs for all lenders. The result: Some lenders have exited or dramatically cut their student lending. Sallie Mae has done neither.
No other company offers the range of saving, paying and financing solutions that we do. Our financial literacy tools — including our Upromise rewards and 529 college savings plans, tuition payment plans, debt counseling programs and access philanthropy — consistently advise students and families to determine what they can contribute from college savings and current income, to find free money before exhausting federal loans, and to use private loans as a last resort to fill any remaining funding gap. That’s because we are committed to helping families navigate the paying-for-college process in the right financial sequence so that they can choose the option that is right for them.
Rest assured that Sallie Mae will be here to serve school, student and family customers during and long after this credit crunch. It is a privilege to do so. Thank you.
Sincerely,
C.E. Andrews