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Remember What Happened Last Time Obama & Dems Intervened In Student Loans?

Student Loan Mess

‘Thousands Of Workers’ Lost Their Jobs When President Obama Took Over The Student Loan Industry Last Year

 

‘Lenders… Have Laid Off Thousands Of Workers’

 

“A year after President Obama signed a law eliminating bank-based student lending, the lenders and guarantors that formed the backbone of the old system have laid off thousands of workers, eliminated programs…” (“A Year After Bank-Based Lending’s Demise, A Shrunken Industry Redefines Itself,” The Chronicle Of Higher Education, 3/29/11)

 

NATIONAL IMPACT: “A new law that cuts banks out of the federal student loan business is costing 2,500 workers at Sallie Mae their jobs. 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.” (“2,500 Sallie Mae Jobs Fall To New Student Loan Law,” AP, 4/22/10)

 

FLORIDA: “The Sallie Mae office in Lynn Haven, which once was a second home to 700 local workers, will close Friday, Sallie Mae officials confirmed Wednesday night. … Although the doors will shut Friday, the real end for the plant came July 1 when private lenders such as Sallie Mae were forbidden from originating federally guaranteed student loans, officials said. The change was tucked into the health care overhaul signed by President Barack Obama earlier this year.” (“Sallie Mae Office To Close Friday,” The News Herald [FL], 11/11/10)

 

MASSACHUSETTS: “American Student Assistance, which guaranteed loans in Massachusetts and the District of Columbia, has laid off about 75 staff members as a result of the changes, says its chief operating officer, Michael Finn. But despite the reduction in funds, he says the company will shift its focus toward loan counseling.” (“A Year After Bank-Based Lending’s Demise, A Shrunken Industry Redefines Itself,” The Chronicle Of Higher Education, 3/29/11)

 

TEXAS: “Aegis Ltd., a global business outsource company based in Irving, confirmed Thursday that it’s laying off 130 workers at its call center in Killeen… A call center employee said the workers affected by the layoff are those who service the Salle Mae client group.” (“Central Texas Call Center Announces Layoffs,” KWTX News, 1/13/11)

 

SOUTH DAKOTA: “In January 2011, Wells Fargo also announced to trim 120 workers in its student loan operations, including many in Sioux Falls…” (“Goldman To Reduce Cost By Layoffs,” Zacks Equity Research, 1/28/11)

 

PENNSYLVANIA: “In July, about 100 employees at Sallie Mae in Hanover Township [PA] lost their jobs.” (“Kanjorski Urges Sallie Mae To Add Jobs,” The Citizens’ Voice [PA], 9/29/10)

 

INDIANA: “Although Indiana was spared the closure of entire Sallie Mae service centers, the state didn’t escape the student-loan giant’s restructuring. Sallie Mae laid off roughly 70 people, who mainly worked in IT, at its Fishers facility on Dec. 3…” (“Sallie Mae Restructuring Affects Indiana Jobs,” Indianapolis Business Journal, 12/8/10)

 

TENNESSEE: “While The Feds Gamble, Knoxville Pays… On Tuesday, President Barack Obama signed a bill, and that same day a Knoxville businessman announced that several of his employees would lose their jobs as a result. This can’t be a good thing. The legislation involves student loans. …The Knoxville companies absorbing the blow are lender Edamerica and loan-servicing company Edfinancial Services. Tony Hollin, chairman and CEO of both companies, says up to 10 of Edamerica’s 26 employees will eventually lose their jobs…” (Editorial, “While The Feds Gamble, Knoxville Pays,” The Knoxville News-Sentinel [TN], 4/2/10)

 

Even Senate Democrats Warned It ‘Could Put Jobs At Risk’

 

Letter From Sen. Jim Webb (D-VA), Sen. Mark Warner (D-VA), Sen. Tom Carper (D-DE), Sen. Ben Nelson (D-NE), Sen. Bill Nelson (D-FL):

 

“We write to make you aware of our concern with provisions of contemplated student lending reform that could put jobs at risk.” (Letter To Sen. Reid, 3/9/10)

 

·         “…we must proceed toward this objective in a thoughtful manner that considers potential legislative alternatives…” (Letter To Sen. Reid, 3/9/10)

 

The Wall Street Journal reports today, “President Barack Obama will announce a plan Wednesday that would allow Americans to consolidate and reduce interest rates on their student loans, the latest in a string of narrowly tailored moves designed to jolt the economy. . . . The switch would help borrowers because the U.S. would essentially be refinancing the private loan at the lower government rate. . . . Wednesday will be the third day in a row Mr. Obama has announced an executive action aimed at bypassing Congress, including a housing refinancing plan and a proposal to train and hire veterans.” But CNBC greets the announcement with a skeptical headline, “White House Student Loan Measures Will Barely Dent Soaring Costs.”

 

It’s instructive, though, to recall what happened the last time Democrats intervened in the student loan industry. In 2010, Democrats attached a government takeover of student loans to their unpopular health care reform bill, (partly so they could use the reconciliation procedure in the Senate, which requires only a majority vote to pass something, instead of 60 votes) and President Obama signed it into law. Back in March of this year, The Chronicle of Higher Education wrote, “A year after President Obama signed a law eliminating bank-based student lending, the lenders and guarantors that formed the backbone of the old system have laid off thousands of workers, eliminated programs, and sought out new roles in the student-loan industry.” Barely a month after the health care spending bill was signed, the AP reported that 2,500 Sallie Mae employees across the country had lost their jobs. And thanks to the student loan takeover, layoffs were reported in Florida, Massachusetts, Texas, South Dakota, Pennsylvania, Indiana, and Tennessee.

 

Amazingly even some Democrat senators warned of these potential consequences just weeks before the bill passed. In a letter to Senate Majority Leader Harry Reid (D-NV), Sens. Jim Webb (D-VA), Mark Warner (D-VA), Tom Carper (D-DE), Ben Nelson (D-NE), and Bill Nelson (D-FL) wrote, “We write to make you aware of our concern with provisions of contemplated student lending reform that could put jobs at risk.”

 

Yet Democrats passed the bill anyway, with the predictable result described by The Chronicle of Higher Education: “The shift meant that the companies were significantly scaling back their student-lending programs, offering smaller loans to far fewer students. Sallie Mae, the largest lender under the FFEL program, is laying off 2,500 employees this year, a reduction of 30 percent of its work force. . . . At least

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog.Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

One Response to “Remember What Happened Last Time Obama & Dems Intervened In Student Loans?”

  1. Could not put it better myself and it’s not a few fans “literally no more than 100” as you say but vast numbers online and growing who are making themselves known. Some people can’t express themselves as well as others and that is no reason to dismiss their opinion. Some people are saying they look like the ones in the Dalek films of the 60’s, rubbish just look at them side by side the new ones have a very unbalanced design the reason the old shape lasted so long was the design was spot on. The design Cusick came up with stuck a cord with the nation and over the years it has been tweaked some good some bad, but if you notice if the tweaks went too far from the original the design started to look wrong. It is like someone trying repaint the “Mona Lisa” it can’t be done you have to do something different you can’t paint a moustache and glasses on it and pass it off as the same thing.

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    Tom White Says:

    Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

    Check out NewsMax!

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