Sallie Mae to Cut Thousands of Jobs Due to President’s Student Loan Overhaul

Posted: March 30, 2010 in Uncategorized

My sister works for Sallie Mae and might lose her job-thanks liberals.  I appreciate you seizing another chunk of the American Economy and putting my hard-working, middle-class, handicap, sister probably out of work.

Powerhouse student loan provider Sallie Mae tells Fox News that as a direct result of President Obama’s new student loan overhaul, it will have to start cutting jobs… and soon.

“This legislation will force Sallie Mae to reduce our 8,600 person workforce by 2,500,” Conwey Casillas, Vice President of Sallie Mae Public Affairs, told Fox in a statement.

The President was at Northern Virginia Community College in Alexandria Tuesday to sign student loan changes into law. The new bill includes a provision for the government to begin directly lending to students. The loans will bypass financial institutions which have traditionally provided the loans and, Mr. Obama says, soaked up billions in subsidies.

“Now, it probably won’t surprise you to learn that the big banks and financial institutions hired a army of lobbyists to protect the status quo,” the President said. “In fact, Sallie Mae, America’s biggest student lender, spent more than $3 million on lobbying last year alone.”

Indeed, Sallie Mae has been outspoken on the plan, calling it a “government takeover” just last month.

“The student loan provisions buried in the health care legislation intentionally eliminate valuable default prevention services and private sector jobs at a time when our country can least afford to lose them,” Casillas told Fox.

Sallie Mae was trying to garner support for an alternative, which the company said was roundly rejected. “We are profoundly disappointed that a reform plan that would have achieved more savings for students was ignored and now thousands of student loan experts will unnecessarily lose their jobs.”

But Mr. Obama says he’s merely looking out for those in need, “I didn’t stand with the banks and the financial industries in this fight. That’s not why I came to Washington. And neither did any of the members of Congress who are here today. We stood with you. We stood with America’s students. And together, we finally won that battle.”

The President says the move will save billions, enabling his administration to use the money to improve the quality and affordability of higher education. But the student loan industry says a bipartisan alternative could have saved billions more by tackling the student loan default rate.

Sallie Mae does not know when jobs will start getting slashed, but, Casillas said, “The job loss will start soon.”

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