The Honorable Edward M. Kennedy
Chairman, Committee on Health, Education, Labor, and Pensions
U.S. Senate

The Honorable Michael B. Enzi
Ranking Member, Committee on Health, Education, Labor, and Pensions
U.S. Senate

The Honorable George Miller
Chairman, Committee on Education and Labor
U.S. House of Representatives

The Honorable Howard "Buck" McKeon
Ranking Member, Committee on Education and Labor
U.S. House of Representatives

Dear Chairmen and Ranking Members:

On behalf of Sallie Mae, the nation's leading saving- and paying-for-college company, I am writing to thank you for your leadership in advancing legislation to reauthorize the Higher Education Act of 1965. This landmark legislation has expanded access to higher education for millions of Americans, particularly for those who face significant financial barriers. Now more students than ever in our nation’s history have the chance to realize their dreams of a college degree, and those college graduates are using education to launch their careers, strengthen our economy, and build America’s future. Completion of the reauthorization process will further ensure that this landmark law continues to serve America’s students for years to come and provide additional and much-needed clarity to colleges, students and parents.

Sallie Mae supports inclusion of several important provisions designed to help parents and students make wise and informed choices in selecting a college and securing the funding needed to pay for it. Specifically, in addition to supporting effective consumer disclosures and protections, we hope the final conference report will:

• Require school certification of all private education loans, including direct-to-consumer loans, to help prevent overborrowing;
• Expand the number of years reflected in the cohort default rate to get more accurate information about how students repay their loans, while ensuring that students and schools are not harmed in these efforts; and,
• Simplify the FAFSA process for low-income families so that no student is denied access to grants and low-cost loans simply because the application process can be complicated or burdensome.

We support many of the provisions under consideration that ensure students are provided key information about their loans, financial aid packages, and the array of options available to them.

However, our regular interaction with over 10 million student and parent customers informs our concern over potentially burdensome or duplicative disclosures, as well as provisions that risk the privacy of students. For example, we oppose inclusion of a provision that would require overly broad disclosure of borrowers’ personal loan information to third-party organizations or companies. While we support default reduction goals, we believe this provision, as written, is unnecessary and potentially risks the privacy of millions of borrowers.

Sallie Mae has always supported efforts to remove barriers to higher education. Strengthening the role that college financial aid administrators play in awarding financial aid to students, clarifying default rates, simplifying the application process, and ensuring reasonable protections for consumers will go a long way in expanding access to higher education. In this respect, Sallie Mae, schools, and our customers are closely aligned since we all want students to be successful, to make smart choices and avoid unmanageable amounts of debt, to graduate, and to be able to repay the loans that helped them invest in their future — all while experiencing the lifelong benefits that come from increased earning power and increased knowledge.

We look forward to working with the conference committee on these and other provisions to reauthorize and strengthen the Higher Education Act this year to best serve America’s families and students.

Respectfully submitted,

Timothy J. Morrison
Vice President, Federal Relations