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Sallie Mae Responds on the Mounting Federal Student-Loan Problem

admin by admin
August 1, 2021
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Sallie Mae Responds on the Mounting Federal Student-Loan Problem

Josh Mitchell’s profile of Al Lord is a compelling look into the making of the federally guaranteed student-loan program that owns 92% of student loans outstanding today (“A Student-Loan Titan Thinks Twice,” Exchange, July 24). We agree that the federal-student-loan system is complicated and needs reform. That business Mr. Lord ran, however, isn’t associated with today’s Sallie Mae . We don’t offer federal student loans.

Sallie Mae offers private student loans to those who have shown an ability to repay, a responsible approach that continues to work for students and families. Fewer than 2% of our loans default annually, in stark contrast to the federal program. We also provide free tools and resources to help students and families make informed choices about planning and paying for college, helping them maximize scholarships, grants and other forms of financial aid—before considering private student loans. We believe college affordability should be a national priority and are proud of our efforts to improve and invest in the lives of all students.

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