Sallie Mae

Sallie Mae Scored for Partisan Help to Rep. Davis U.S.-Chartered Corporation Acknowledges Republican Got Brochure but Says It Was a Mistake By Tod Robberson ing reelection in Virginia's 11th Dis- which is prohibited under federal Horton's campaign manager, Kim trict, said they could not confirm or law. Washington Post Staff Writer Allman, said she saw a Davis aide deny that his office received the bro- They said Davis also could be sub- holding the "Myth vs. Fact" sheet Democratic Party officials alleged chure. ject to Federal Election Commission during a debate at Camelot Elemen- yesterday that a federally sponsored Democrats said the document was sanctions if it is proved that he re- tary School in Fairfax County last corporation violated campaign law faxed to Davis's office last Tuesday ceived and used such a contribution. Tuesday. by sending Rep. Thomas M. Davis by Sallie Mae's director of govern- Dan Alcorn, the 11th District Demo- The House Democratic Policy TUESDAY, SEPTEMBER 24, 1996 The Washington Post III (R-Va.) advice on how to respond ment relations, Scott E. Miller. cratic chairman, said state party offi- Committee said in a statement: to Democratic criticism of his record In 11th District debates and can- cials are reviewing possible legal ac- "Republicans will go to any length on government-assisted student didates' forums, Davis's Democratic tion against Sallie Mae and Davis. to try to mask their appalling record loans. opponent, Thomas J. Horton, re- The House Democratic Policy on student loans. And, apparently, They said Davis received an 11- peatedly has attacked Davis by say- Committee, headed by House Mi- Sallie Mae will go to any length to page brochure last week from the ing he has voted to cut billions of dol- nority Leader Richard A. Gephardt make sure that Republicans suc- Student Loan Marketing Associa- lars from student loan and other (D-Mo.), called Sallie Mae's actions ceed." tion, or Sallie Mae, titled "Respond- education programs. "clearly and blatantly improper, and Davis's campaign manager, Trey ing to Clinton/Democrat Charges on Sallie Mae, established by con- potentially illegal." Hardin, called the Democratic alle- Student Loans." gressional charter in 1972, is the Laura Nichols, Gephardt's com- gations "an act of desperation on Sallie Mae spokeswoman Gisela biggest supplier of money for stu- munications director, said the bro- their part" to bolster Horton's cam- Vallandigham confirmed that docu- dent loans in the country. One-third chure was uncovered after an em- paign. ments containing information about of its board of directors is appointed ployee of Sallie Mae apparently "I'm surprised, but I'm not sur- student loans were sent to Davis's directly by the president, including faxed it by mistake to the office of prised," Hardin said. "What else can Capitol Hill offices by one or more the board chairman. The corporation Rep. William "Bill" Clay of Missouri, they do when they're running company employees. She said the is stockholder-owned, and company the ranking Democrat on the Eco- against someone who's extremely corporation usually refrains from in- officials said it is not subject to provi- nomic and Educational Opportunities popular and extremely difficult to volvement in political campaigns and sions of the 1939 Hatch Act, which Committee. beat in his own district?" promised a "thorough and complete prohibits political activity by govern- The fax cover sheet, however, investigation." ment agencies. was addressed to Peter Sirh, Davis's "Both the management and the But Democratic officials said that, senior legislative assistant. The doc- FOR MORE INFORMATION board of directors of Sallie Mae re- like any other corporation, Sallie ument, a copy of which was obtained To use an on-line calculator pudiate this document," she said. "It Mae is subject to federal restrictions by The Washington Post, included a from Sallie Mae to figure Sallu was an inexcusable blunder. The on corporate contributions to politi- legislative history of the student loan monthly payments on education corporation regrets that this hap- cal campaigns. They said the time program, a sheet titled "Top Ten loans, click on the above pened, and the company is reviewing and money Sallie Mae spent collect- Things They Aren't Telling You symbol on the front þage of The how it occurred." ing the information it gaveito Davis About the Clinton Loan Program" Post's site on the World Wide Web Aides to Davis, a freshman seek- constituted an "in-kind" contribution, and a "Myth vs. Fact" sheet. at http://www.washingtonpost.com