Sallie Mae Says It's Reviewing Sen. Elizabeth Warren's Letter

Updated from 1:56 p.m. EST with response from Sen. Warren's office 

NEW YORK (TheStreet) -- Sallie Mae  (SLM) is determining how it will respond to Sen. Elizabeth Warren's letter to the company that said she's concerned the lender is hurting student borrowers.

"We are reviewing the request, and the facts confirm we service loans the right way: our customers default 30% less than the national average and are significantly less likely to postpone paying their loans by using forbearance," a Sallie Mae spokeswoman wrote TheStreet in an emailed statement.

Warren suggested in her letter to John F. Remondi, CEO of Sallie Mae's parent company SLM Corp., that data suggested Sallie Mae is placing borrowers in deferments and forbearances instead of better options like an income-based repayment plan.

On Dec. 20, organizations wrote a letter to U.S. Education Secretary Arne Duncan and asked that the federal agency step up oversight of student loan servicers, including Sallie Mae.

While Sallie Mae's latest statement defends the company for having a default rate that's 30% less than the national average, Warren's letter asked the company to detail how it reaches that percentage.

Warren's office declined to comment on Sallie Mae's statement.

-- Written by Joe Deaux in New York.

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