A r c h i v e d  I n f o r m a t i o n

    FOR RELEASE       Contact: Jane Glickman (202) 401-1576   December 9, 1996        Stephanie Babyak (202) 401-1576 

"Leo Kornfeld led the successful start up of the William D. Ford Federal Direct Loan Program," Riley said. "Under his leadership, direct loans grew from an idea on paper to a program serving colleges and students throughout America."

Direct lending was launched in the 1994 and 1995 school year with $1 billion in loans and 104 postsecondary institutions. Today, approximately 1.7 million borrowers finance some $9 billion for their college education through direct loans at more than 1,600 schools.

"This was a tremendous accomplishment," Riley said. "Leo made customer service a priority. Schools and students are extremely satisfied with the program. Leo has been a great asset to the department."

"As acting chief information officer, Leo began the work of establishing an office dedicated to strengthening all the department's information systems and technology related tasks. We will build on this foundation as we continue to improve on service to all our customers," Riley said.

The CIO post was created by Congress in the Information Technology Management Reform Act of 1996, which requires every cabinet level agency to designate a CIO. Kornfeld was charged with improving the department's information systems in cooperation with senior management, and making recommendations to the secretary on the development of the CIO's office.

Kornfeld joined the department in March 1994 as head of student financial aid programs in the Office of Postsecondary Education. To give direct lending -- a major initiative of the Clinton administration -- greater attention and focus during its early transition, Kornfeld was named senior advisor to the secretary for direct lending in October 1994. With direct lending fully operational by June 1996, direct lending was reintegrated into the Office of Student Financial Assistance, and Kornfeld assumed the new CIO position.

Before joining the department, Kornfeld was vice president of enrollment planning at Pace University, New York, N.Y. During the 1980s he served as president of two software companies: True Basic, Inc., Hanover, N.H., and Information Science, Inc., Montvale, N.J. He was the deputy commissioner for student financial assistance during the Carter administration (1977 to 1980).

In his resignation letter to the secretary, Kornfeld said, "I have had the good fortune of a succession of significant and rewarding positions over my professional career thus far. I would, without hesitation, name my second tour of duty' at the Department under your command as the most exciting as well as the most important."