The president and CEO of Pennsylvania Higher Education Assistance Agency announced on Thursday he will be retiring from his post in July.
James Preston, 67, has been employed for the past 15 years by the agency that oversees the state grant program and is as one of the nation's largest student loan servicers.
After serving 25 years in investment banking positions on Wall Street and earning an MBA from State University of New York at Albany, he began his service as PHEAA's executive vice president of client relations and loan operations 15 years ago.
He was appointed interim CEO in October 2007 following the retirement of its former CEO Dick Willey. Following the agency's first-ever national search to fill its top spot, Preston was given a permanent appointment to the position in March 2008.
"After 15 years with the agency, it's become the right time for me to step aside so I can focus on family and other personal goals," Preston said in a statement.
"I am proud to have worked so closely with our employees, board members and stakeholders to best meet the changing needs of Pennsylvania students, while operating in such a challenging national student aid marketplace. PHEAA is well-positioned with the necessary leadership and dedicated workforce to best meet future challenges in support of our public service mission for the Commonwealth."
Preston took over as head of the agency during one of its most turbulent times when there was turmoil in the financial markets and significant changes in federal law governing the student loan industry.
Bill Adolph, former chairman of PHEAA's board when Preston was hired, said, "Jim knew the business, knew the student loan business and that's what we needed at the time."
He added, "He was highly respected in his field and he certainly was responsible for helping PHEAA during a very difficult time in 2008 during the financial crisis and I wish him best on his retirement."
Sen. Vince Hughes, D-Philadelphia, also was on the board that hired Preston and credits him with shepherding the agency through difficult times to become "one of the preeminent organization of its kind in the country."
"He's been an incredible force for PHEAA which means he's been an incredible force for paving the financial way for Pennsylvania children to go to college," Hughes said. "I can't think him enough for his service. He's really done an excellent, excellent job. I'm sorry to see him go but he's earned whatever career path he's decided to take."
Preston, who receives a $329,887-a-year salary, is among the highest paid state government employees.
The agency's board of directors is now evaluating options and expects to begin the process of searching for what would be its seventh president and CEO in PHEAA's 54-year history.