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Dr. Charles E. Greenawalt II
(717) 361-8905 HARRISBURG -- (February 1, 2005) In order to protect competition in the marketplace, Pennsylvania jobs that might otherwise be out-sourced to India and the ability of tens of thousands of Pennsylvanians to attain an affordable higher education, lawmakers and the Rendell administration should roundly reject Sallie Mae's bid to consume the Pennsylvania Higher Education Assistance Agency (PHEA), said Dr. Charles E. Greenawalt II, the Senior Fellow of The Susquehanna Valley Center for Public Policy.
"This is a dangerous proposition for our state and for families trying to put kids through school. Giving Sallie Mae a virtual monopoly on Pennsylvania would be a disaster," Greenawalt said.
"I've been a college professor for more than 20 years so I know from first-hand experience about the challenges families confront when it comes to making it through college. The bottom line is that Sallie Mae wants to drive out any competition so it can make more money and, in the end, the students and families will pay the price."
Sallie Mae has offered the state $1 billion to take over PHEAA's administration of the state grant program. PHEAA's board, after a thorough review, rejected the offer and has approved a resolution vowing not to sell any portion of the agency to one of its major competitors.
Greenawalt also cited media reports highlighting Sallie Mae's track record of out-sourcing jobs to India.
"We've always endorsed a free marketplace and we understand that Pennsylvania is part of the global economy," Greenawalt said, "But I can't fathom shipping our jobs to India to administer a state grants program. We need to invest here in Pennsylvania."
The Susquehanna Valley Center for Public Policy is an independent, non- partisan, non-profit public policy research organization that was established to help Pennsylvanians build a brighter future.
Greenawalt has taught at the university level for more than 20 years, currently teaching courses in public administration, state and local government, American government, and public policy at Millersville University in Millersville, PA.
He also served as the Assistant Director of Millersville University's Center for Politics and Public Affairs. Previously, he was the Policy Director for the Pennsylvania Senate for seven years and earlier served as the Director of Community Development for Greene County, Virginia.
The Susquehanna Center joins a growing list of higher-education advocates and other trade associations that are lining up in support of PHEAA.
For more information, please visit www.salliemaenot.com.
