Federal Student Loan Official Quits

Source: AP

May 8, 2007
Federal Student Loan Official Quits
By THE ASSOCIATED PRESS

Filed at 6:05 p.m. ET

WASHINGTON (AP) -- The head of the Department of Education's student loan office is stepping down amid growing criticism that the agency has been lax in overseeing the student loan industry.

Theresa Shaw is leaving her post as chief operating officer of the Federal Student Aid office, which she has held since 2002, the department said in a statement. The office administers federal student aid programs.

The statement said Shaw told Education Secretary Margaret Spellings in February that she planned to leave the department, but not until June 1.

Shaw previously worked at student loan giant Sallie Mae, also known as SLM Corporation. Critics in Congress and student advocates have complained that the department has too many people with ties to the student loan industry in charge of overseeing that industry.

Read more: http://www.nytimes.com/aponline/us/AP-Student-Loans-Resignation.html?_r=1&oref=slogin

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Everybody that REALLY believes she had PLANNED to quit in June raise their hands......

Don't let the revolving door hit you in the ass!

:kick:

Source: NY Times

Under criticism that it has been lax in policing the $85 billion student loan industry, the Education Department announced yesterday that the chief official responsible for overseeing the loan program was stepping down.

The resignation of the official, Theresa S. Shaw, was made public two days before Education Secretary Margaret Spellings is to testify to a Congressional committee. Ms. Spellings is expected to face tough questions about the oversight of lenders’ practices and her department’s enforcement of policies against conflicts of interest.

Officials in the department characterized Ms. Shaw’s departure as chief operating officer of the office of federal student aid as unrelated to disclosures about how lenders have plied universities and financial aid officers with favors to win more business.

Ms. Spellings said in a statement that Ms. Shaw told her in late February that she would leave in June. That was after the Attorney General Andrew M. Cuomo of New York announced an investigation of ties between lenders and universities.

Read more: http://www.nytimes.com/2007/05/09/us/09loans.html?_r=1&ref=washington&oref=slogin

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Another loyal Bushbot throws herself on her sword to protect the higher ups. I guess she wanted to spend more time with her family.

ideology.

Bush is the Jim Jones of the political world.

The department is also being scrutinized by Congress for its failure to crack down on hundreds of millions in dollars in questionable subsidies that loan companies have collected.

Terry W. Hartle, senior vice president at the American Council on Education, said that many of the problems that have come to light had not been considered a problem before.

“Lots of things that were seen as acceptable three months ago are no longer regarded that way,” Mr. Hartle said.

Democrats have asked whether the department has too many people with ties to the industry in senior positions. Ms. Shaw headed an office where another official, Matteo Fontana, was put on paid leave after the disclosure that he had held at least $100,000 in stock in a loan company while at his job. He, too, had worked at Sallie Mae.

JPMorgan snared in student loan scandal
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2840654

:kick:

service"!