Chairman Miller Statement on Resignation of Sallie Mae CEO

Tuesday, May 22, 2007

WASHINGTON, DC -- U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement today on the announcement that Sallie Mae CEO Thomas Fitzpatrick has stepped down.

"Mr. Fitzpatrick's abrupt departure suggests that the lending industry is beginning to recognize that business as usual is no longer acceptable at Sallie Mae or any other company participating in the federal student aid programs. However, while new leadership in the industry is certainly welcome, the fact remains that simply replacing individual executives won't stop the corrupt practices that Congress and state attorneys general have recently uncovered.

"In addition to cleaning up the relationships between lenders and colleges -- as the House recently voted to do -- we must also cut the excessive subsidies paid by the federal government to lenders and use that money to help students and families pay for college.  Indeed, the proof that the industry is awash in wasteful taxpayer subsidies can be found in the news, reported by wire services this afternoon, that Mr. Fitzpatrick will leave Sallie Mae with an outsized $4.1 million severance package."

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FOR IMMEDIATE RELEASE
Contact: Tom Kiley / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853