A r c h i v e d  I n f o r m a t i o n

FOR RELEASE
September 29, 1999

Contact:
Karen Santos Freeman (202) 205-1531
Stephanie Babyak (202) 401-2311
Jane Glickman (202) 401-1307

NEW STUDENT AID LEADERSHIP TEAM UNVEILED
focus on students, schools and financial partners; 1st ombudsman also appointed

Greg Woods, chief operating officer for student financial assistance (SFA), today issued a reorganization plan built around students, schools and financial partners and introduced a new management team to lead the office in its mission of better service for customers.

"This is a phenomenal collection of talent," Woods said. "We've attracted people who are at the top of their fields. All of them have more lucrative options in the private sector, but they want to be here. They believe in public service and they want to bring their positive energy, their skills and passion to this important task of making the financial aid system work better for students, schools, and lenders."

Woods said the reorganization and new management team represent the culmination of months of work to realign all of the financial management and aid delivery responsibilities into three distinct "channels" based on customers - students, schools, and financial partners - from an organization that was based on functions.

Created by the Higher Education Amendments (HEA) of 1998, SFA is the federal government's first "performance-based organization" (PBO). In fiscal year 1999, students received some $50 billion in federal grants and loans administered by SFA.

The new management team members are:

The HEA also specified appointment of a student loan ombudsman to receive, review, and attempt to informally resolve complaints from borrowers. The ombudsman's office also will compile and analyze data on borrower complaints and make recommendations for improvements.

Also assuming leadership responsibilities in the PBO are: "Our success will be measured by customer satisfaction, the cost of providing student financial aid, and employee satisfaction," Woods said. "Now we have the team in place that can get us where we need to be."

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