That's a shame. For-profit sector I'm sure is breathing a little easier.

Too bad he did not just stay in California to begin with.

Shireman was a breath of fresh air at the DOE, Student Financial Assistance. He is intelligent, could speak clearly and with a rational mindset in front of educated people, and future generations of needy students will be in his debt relative to their expanded gift aid (confused syntax intended). The resistance to Direct Lending since 1992 essentially boiled down to "free markets are always better, more competition equals better service," and so forth. We have sure seen how the unfettered marketplace works, and if you work in student aid you already know the lie about superior service from private sector originated loans. Thanks Robert for your service.

Birdman,

You're right. Just before the closing bell, for-profit shares are soaring.

Yes and we all know that the government provides the best service, especially when there's no compeition at all. Oh, and gee, who in reality is providing the serives; oh that would be private sector for profit (those evil devils) companies with huge government contracts - their just not named sallie mae ths time. Maybe Mr. Shireman is smarter than I thought; he's getting out before DL blows up in his face. So, he'll be going back to a lobbiest post similar to the one in which he came from... hmmm.. and nothing about that is underhanded I'm sure.

Nice job Shireman.
The myth that private is somehow a more efficient social organization than public is amusing. Each system has produced important and amazing results for humanity. The US Military of WWII, the automobile, electricity, electricity to every house in the US, Railroads, fire departments, police, hospitals, fresh water to ever house in the US, libraries, universities, public sewers, the elimination of polio, etc. (some of these things are beholden to both systems, but none would be possible without both or one or the other, or a wise mix of them both).
Within the supposed socialism v. capitalism debate what is consistently elided is that the basics of human behavior remain essentially the same whether the social organization is public or private: Competition is as inefficient as public redundancies, one produces rapid growth and "proficiency" until that competition is subsumed by laws of monopoly or oligarchy, the other might be sloppy but it does less harm to individuals until it has proliferated beyond manageability; private greed produces the same kind of waste that public graft does, they both focus wealth and power into the hands of the few, the private funnels more money, public concentrates more power; and the list could go on.
In short, neither system provides the magic bullet that slays the were-beast at their core: that is, the human idiot that each and every one of us relentlessly is or can be.

If you are a believer in either system, you are foolishly dreaming of a man that is not. A man that has somehow produces a theory, a social system that is always the best, the most right, the "never wrong." This, of course, is incredibly stupid. Nothing that any human has ever done has been always right or wrong. Thus, the market, capitalism, or private social organizations have their uses, like a hammer or a chisel does. As well, public, socialist, government social organizations, like a drill or a saw does, has their uses.
To suggest otherwise is akin to suggesting that a carpenter should approach a job with only a hammer at her disposal.
I am tired of the rank stupidity that such knee-jerk ideologically informed arguments represent.
It has been allowed to exist for too long.
Market driven social policy has its uses: It is like a suped up hot-rod, it runs rough but fast, it is temperamental and needs constant adjustment, but sure is fun at times. While the public driven social policy is more like a truck, it has a lot of power--look at China, very powerful--but a lot of limits, not necessarily very fast, not necessarily very agile, but it can make a lot happen.
Only an idiot would use a Ferrari like a truck or vice versa, but still such apples and oranges comparisons continue.
I for one have had enough of it.

Recurver frames the issue extremely well of public vs. private. A number of years ago, two professors wrote a book on America's health care system and noted that when it started, post WWII, it was a value to employees, when the country was in a recession. The costs were reasonable, and the organizations providing the services, non-profit. Years later, a movement to take the non-profits public came forth, and costs, bloating and mismanagement, along with billions in marketing/advertising costs (non-value added) helped to create the most patch worked health care system in the world. Did private do it better? No!

In most societies, the services noted by recurver are best provided by government. Does Blackwater do a better job than the U.S. Army and Marine Corp.? Are they as cost effective? That is a hard one to measure since some for profit organizations like Haliburton and Blackwater have operated with much impunity, and without the accountability and transparency that characterizes many government entities and for profit entities as well.

Manufacturing companies, software developers and the entertainment industry seem to operate well in the for profit area. If they aren't well managed, they fail and go out of business... unless they are bailed out by the government, as in our recent economy.

Student loans will be better served through a direct lend program. At sixty, I owe in the six figures for my 2008 Ph.D. and am unemployed. My early loans, in the Clinton years, were below 2.75%, while my later loans, during the George W years, were above six percent!

Shireman's ability to meet two of the most critical goals of the DOE speak well of him! I for one, welcome an income based repayment, one that won't necessarily bankrupt me!

Good riddance

Does anyone else find it disturbing that this article references his position working FOR the Dept of Education as being about accomplishing the goals of the Institute of College Access and Success???