The CEO of the student loan corporation Sallie Mae met with state legislators yesterday to discuss the company's $1 billion proposal to reallocate funds for the Pennsylvania Higher Education Assistance Agency (PHEAA).

However, details of the meeting were not available at press time.

Sallie Mae spokesman Tom Joyce said Sallie Mae CEO and vice chairman Albert Lord had individual meetings yesterday with leaders from both the Pennsylvania's House of Representatives and the Senate.

Joyce said last week that the proposal on the table was not a matter of public knowledge.

"The goal today was to be heard and show how Pennsylvania will benefit. Today was the first step," Joyce said. "We know we'll get a fair hearing from the legislature."

These meetings were a result of PHEAA's rejection of Sallie Mae's initial proposal three weeks ago.

Though Gov. Ed Rendell and his staff did not attend any of yesterday's meetings because they were not administrative, the governor is still considering the proposal, said Kate Phillips, a Rendell spokeswoman.

Phillips said that Rendell is not currently scheduled to discuss aspects of the Sallie Mae proposal with Lord.

"The governor has said it's worth taking a look. Students should be protected, but [for the governor] to reject it outright isn't fair," Phillips said. "It's too preliminary to say whether he's for or against."

Erik Arneson, Chief of Staff to state Sen. Majority Leader David J. Brightbill, R-Lebanon, said Lord met with Brightbill yesterday, along with Senate President Pro Tempore Robert Jubelirer, R-Blair.

"[Lord] made his pitch, they dialogued and explained why [Lord] thought Pennsylvania would benefit, and attempted to answer questions," Arneson said, adding that he was unsure if an updated proposal was presented.

Both senators entered the meeting with little reason to think the proposal was in the state's best interest, and the meeting didn't change their position, which may not reflect the majority's opinion, Arneson said.

"The governor and the other caucuses are more enamored than we are," said Arneson.

Joyce said the money from the proposal would go directly to state legislators, and she added that PHEAA's board of directors would remain in place, current loan and grant programs would stay the same for students, and employees would retain their jobs.

Sallie Mae would benefit if the state accepted the proposal because the company's takeover of loan ownership and services would "unlock" money that is stored in PHEAA, Joyce said.

By his calculations, he said students could save up to $218 a year.

"I went through college on loans. When you're a college student, $218 is a lot of money," Joyce said.

PHEAA is still standing by the board's rejection regarding the proposal, said Keith New, PHEAA spokesman.

"I think the entire process of what Sallie Mae is doing is abnormal. It's a hostile takeover," he said. "Any purchase [of PHEAA] would harm future generations of children."

Steve Miskin, spokesman for House Majority Leader Samuel H. Smith, R-Armstrong, Indiana and Jefferson, said Lord also met Smith for a meeting about Sallie Mae's proposal, but would not comment whether the representative would support or reject it.

"Our first concern is the students," Miskin said.