Teresa Shaw, former Sally Mae employee and (soon to be former) Chief Operations Officer of the Federal Financial Aide office quits her post amid allegations of wrongdoing in federal/corporate lending practices.
Ms. Shaw was appointed COO of the Department of Financial Aide in 2002 after a successful career at top student loan lender Sally Mae. She recently announced her resignation (due to take place July 1st) over growing concerns of improper relations between the Department of Education and private lenders.
Like many other scandals in the Bush administration, this is yet another attempt by private enterprise to infiltrate and abuse government power to further corporate profits. The student loan industry in particular is spinning way out of control. As thousands and thousands of borrowers have testified, lenders have gotten away with financial murder. The worst lender by far happens to be Sally Mae, whose former CEO lives a life of luxury that even the richest of the rich envy.
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Teresa Shaw's resignation should give all of us cause for concern. She sees the writing on the wall and is wisely moving aside before the shit hits the fan. This is only the tip of the iceburg. In 2003, Sally Mae CEO Al Lord contributed over $100,000 to former House Majority leader John Boehner.
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... legislation was the fruit of Sallie Mae’s assiduous courtship of top Republican leadership, especially Rep. John A. Boehner, R-Ohio, who had been the chairman of the House Education and Labor Committee before becoming House majority leader. Boehner, the biggest beneficiary of Sallie Mae campaign cash in the House, got several opportunities to fly on Sallie Mae’s corporate jet with Lord, and Boehner’s daughter got a cushy job at a Sallie Mae subsidiary. Boehner, returning the favors, famously told a meeting of the Consumer Bankers Association in 2005, during the heat of the student loan interest debate, to "relax and stay calm ... Know that I have all of you in my two trusted hands."
More lining of their own pockets by the Reubs, to the detriment of ordinary folks.
Ms. Shaw was appointed COO of the Department of Financial Aide in 2002 after a successful career at top student loan lender Sally Mae. She recently announced her resignation (due to take place July 1st) over growing concerns of improper relations between the Department of Education and private lenders.
Like many other scandals in the Bush administration, this is yet another attempt by private enterprise to infiltrate and abuse government power to further corporate profits. The student loan industry in particular is spinning way out of control. As thousands and thousands of borrowers have testified, lenders have gotten away with financial murder. The worst lender by far happens to be Sally Mae, whose former CEO lives a life of luxury that even the richest of the rich envy.
****
Teresa Shaw's resignation should give all of us cause for concern. She sees the writing on the wall and is wisely moving aside before the shit hits the fan. This is only the tip of the iceburg. In 2003, Sally Mae CEO Al Lord contributed over $100,000 to former House Majority leader John Boehner.
*****
... legislation was the fruit of Sallie Mae’s assiduous courtship of top Republican leadership, especially Rep. John A. Boehner, R-Ohio, who had been the chairman of the House Education and Labor Committee before becoming House majority leader. Boehner, the biggest beneficiary of Sallie Mae campaign cash in the House, got several opportunities to fly on Sallie Mae’s corporate jet with Lord, and Boehner’s daughter got a cushy job at a Sallie Mae subsidiary. Boehner, returning the favors, famously told a meeting of the Consumer Bankers Association in 2005, during the heat of the student loan interest debate, to "relax and stay calm ... Know that I have all of you in my two trusted hands."
More lining of their own pockets by the Reubs, to the detriment of ordinary folks.
