Pennsylvania Higher Education Assistance Agency (PHEAA) wants to duke it out with Sallie Mae, the nation's largest provider of student loan services.
Sallie Mae started out as a federal agency but then went private = for profit. Does this scenario sound familiar?
Not only are fopros and non-fopro colleges competing for students and pointing their fingers at one another, now the loan companies that service the student loans are doing it, too.
PHEAA manages an $82 billion fund - all public money and they are due to receive $451.3 million in tax dollars for its Higher Education Assistance Fund.
But...PHEAA blew $136,000 on a three-day meeting at an exclusive western Penn resort and they have spent $800K on board trips in recent years. This big spending has drawn attention and PHEAA doesn't like it.
Though questioned, they respond that they cannot respond because it would reveal info that could hurt them competitively.
It's like saying the State Universities don't have to tell how they spend their money because it would keep them from competing against the fopros for students.
The argument doesn't fly.
PHEAA continues to defend its secrecy and Sallie Mae continues to rake in the big bucks.
Money...nope, the Bible says, "the love of money is the source of all evil."
Yep, it looks like that's the case here.
What do you think?
SLM Corporation (Sallie Mae) has been recognized as one of the 100 Best Corporate Citizens according to Business Ethics magazine, and one of the top 30 companies for executive women by the National Association of Female Executives.
Posted by: Mary | August 1, 2006 12:32 PM | Permalink to Comment