Posted on 05/03/2010 12:56:14 PM PDT by Mozilla
ObamaCARE was supposed to be a takeover only of the health care industry. But it also turned out to take over the student loan industry as well, which hardly anyone in the media even bothers to discuss. So today’s announcement from Sallie Mae fA that they will cut 2,500 jobs because of the takeover may come as a shocker to some. The AP surprisingly reported that the nation’s largest student lender has told 1,200 staffers in service centers in Killeen, Texas, and Panama City, Fla., they will lose their jobs by year-end. The remaining cuts will follow in 2011, resulting in nearly a third of the company’s total work force of 8,000 losing their jobs.
The cuts result from changes made to the federal student loan program as part of the health care reform signed by President Obama last month.
The law strips the middleman role in student lending away from banks. It’s expected to save at least $60 billion in fees that went to banks to process government-backed student loans.
But it will also mean a drastic reshaping of Reston, Va.-based Sallie Mae, which wrote a record $7.7 billion in federal student loans in the first three months of the year.
“Ironically, one quarter before the government takes over loan originations, Sallie Mae broke its own (federal student loan) origination record,” Sallie Mae Chairman and CEO Albert L. Lord said in the company’s earnings announcement.
The law is “not good for the company and it’s certainly not good for the employees,” the CEO added during a conference call to discuss the results early Thursday. Losing federal student loans will result in a “draconian drop” in income from loan originations, Lord said.
(Excerpt) Read more at fireandreamitchell.com ...
“It’s expected to save at least $60 billion in fees that went to banks to process government-backed student loans.”
Sounds good to me. Less economic fascism.
Don't be surprised if future college loans comes with a "service" contract...with a nice brown uniform.
The remaining ones are already in the process of moving to India.
No worry. To be replaced by 4000 government union jobs.
Interesting.
I drive by a HUGE Sallie Mae building on the way to work.
A lot of the people in that building are nervous and are probably headed for the axe, but the Indiana office isn’t mentioned.
Zero beat you to the punch. He is floating some plan if you graduate from college and work for the gov’t or some other form of “public service” your student loans will be forgiven.
I thought I saw earlier that as many as 1700 may be affected in the Sallie Mae site near Fishers....
hh
The goal is 100% government control by Liberal Socialist bureaucrats determined to undermine our sovreignty and allow the Globalists.
Impeach!!!!
These are private jobs in a GSE (Government Sponsored Enterprise). Sallie Mae employees will be replaced with government union stooges doing it more efficiently.
Right.
Image if our roads were built by government employees and not contractors.
Only private sector (self funding) jobs. He is all for creating government union (unfunded) jobs.
Of course this put the deficit into orbit and destroys the country.
They’ve had that for quite some time. Low income teacher, Army, etc...
I’d bet that $60 billion will now go to the government. No way the borrowers will get a break.
“The goal is 100% government control by Liberal Socialist bureaucrats determined to undermine our sovreignty and allow the Globalists.”
That seems to be the goal of the Administration. They want to take over every sector of the economy and make it part of government. By regulating lending they control who gets into the universities and what they have to do to pay them back or to get approved. They want unions to run the show, instead of a GSE or a private business. As such they get people in who are not only loyal to Obama, but want to help destroy the capitalist system.
Why else are they doing things that are unconstitutional? And not only that but they are not being honest and making it hiding all sorts of things within bills that no one reads.
This is just the start of us finding out what was also in that health care bill besides what we already knew.I do suspect this is all been planned even before Obama ran.
It’s Soros. End of story.
Correction: Why else are they doing things that are unconstitutional? And not only that but they are not being honest and hiding all sorts of things within bills that no one reads.
This is just the start of us finding out what was also in that health care bill besides what we already knew. I do suspect this was planned by the left even before Obama ran.
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