Sallie Mae Gets Downsized

NEW YORK (Dow Jones)–SLM Corp. (SLM) will still shed thousands of jobs company-wide despite agreeing to make local hires as it moves its headquarters to Delaware. I have no sympathy for all of you customer service representatives as you literally laughed at the

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amount of my student loans when I called to reinstate any qualifying forbearances or deferments. Now you are unemployed and will look for sympathy from Congress to extend the unemployment benefits, fighting for benefit packages and had you attended university, you’ll really know what it’s like to be on the other end of a Sallie Mae phone call. Karma is wonderful. 

 The student lender, commonly known as Sallie Mae, announced Thursday it will relocate its home base to near Newark, Del., from Reston, Va. It will receive financial incentives based in part on how many jobs it adds. So Sallie Mae found a way to make a profit while walking over its (now former) employees. Those locals who decide to work for Sallie Mae are now aware of what’s in store for them as the student loan giant continues to maneuver amidst its lost of revenue.

“We’re growing in some areas and shrinking in others,” Chief Executive Albert Lord said on a conference call Friday morning. He said the company will be “net down” even after it hires new employees in Delaware. 

Yes, remember how it was “saving” jobs by selling one of its facilities? Sallie Mae sells center to Aegis, saving jobs – BusinessWeek, May 18, 2010. It appears that Sallie Mae is robbing Peter to pay Paul–what alot of average Americans do with their monthly bills. 

Sallie Mae warned this spring it could cut more than 2,500 of its 8,600 jobs as it faces significant upheaval in the federal student loan market. The U.S. government took over originations of federally guaranteed student loans Thursday, stripping the company–previously the largest originator of federal loans–of a major revenue source. Sallie Mae is expected to focus more on its private loan operation and other fee-based businesses.  Sallie Mae is playing the corporate blame game, with the billions of dollars of recurring revenue from student loan interest payments I think she’ll be fine, unless the federal government decides to implement a law protecting consumers like it did with the credit card industry…. 

Sallie Mae shares were inactive premarket. The company’s stock has fallen 8.4% so far this year.  Don’t worry, you’re not likely to go bankrupt, your assets are built on the communal burden of others. You’ll likely be considered “too big to fail” as well. The average American, well they’re just not that important.

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