I was perplexed by the article on student debt, as private loans represent only 7 percent of last year’s $113 billion in loans (“Class Warfare,” June 2).
Terms of the other 93 percent — those made by the government — are established by policymakers. As a private-sector lender, Sallie Mae offers loans to supplement federal financial aid that help students graduate with less debt.
Recently, we’ve lowered rates, eliminated origination fees, added consumer safeguards, launched simpler disclosures and created more repayment options. As a result, 92 percent of our private-education loan customers successfully make on-time payments.
For our customers who need additional assistance, we work one-on-one to understand their financial situation and identify appropriate payment options.
In fact, we have modified more than $1 billion in private education loans with interest-rate reductions or extended repayment terms. Further, as a servicer of federal loans, we help customers access taxpayer-funded repayment options such as income-based repayment.
Patricia Nash Christel
Vice President,
Corporate Communica-
tions, Sallie Mae
Newark, Del.