Federal Student Loan Chief Will Step Down

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/08/AR2007050801805.html?hpid=moreheadlines

Federal Student Loan Chief Will Step Down
Resignation Comes as Probes Intensify

By Amit R. Paley
Washington Post Staff Writer
Wednesday, May 9, 2007; Page A04

The head of the U.S. Education Department's student loan office announced her resignation yesterday amid mounting criticism of the agency's oversight of the loan industry.

Theresa S. Shaw's exit as chief operating officer of the Office of Federal Student Aid comes as the New York state attorney general, congressional Democrats and the department's inspector general are investigating the loan industry and the web of personal and financial ties linking some key players in lending companies, universities and the government.

Shaw, a former executive at loan industry leader Sallie Mae, has held her department post for five years. Her resignation is effective June 1. Some student-loan consumer advocates gave her a harsh appraisal.

"Her tenure has been characterized by lack of oversight and negligent administration of the student loan program," said Michael Dannenberg, education policy director at the New America Foundation and a former Democratic aide on Capitol Hill.

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To suffer without end. I remember the last time talking to the "nice folks" at Citibank about thier 8.5% Interest rate on a FUCKING STUDENT LOAN. If I fail to come through the government takes the loss, but they can pretty much ensure they I pay through the nose every time.