Posts Tagged ‘shift’

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.

Another News Article: “Law Degree Can’t Guarantee Law Firm Offer”

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O.k., I posted an article published by a Lansing Michigan newspaper dated May 31, 2010 entitled 

Law degree no guarantee for jobs | | Lansing State Journal at this Life’s Mockery post on the same date:

A more recent article  dated June 6, 2010: Law degree can’t guarantee job offer | The Columbus Dispatch, the sentiment is echoed.

“A few years ago, a law degree was practically a ticket to a comfortable life. The recession has changed that for most new graduates.” Interesting, so the author implies that merely a few years ago MOST new graduates would’ve had a comfortable life except for this recession thing that ‘messed everything up.’ Really? We must survey those graduates who were pre 2007/2008 and see how many were actually practicing the law, full-time, able to live based on that salary and meet their student loan obligations then one can assess what was considered a comfortable life.

This naive guy says the following: ““I have no problem paying my dues,” Kay said. “The problem is, I can’t even get a job at the bottom.” When a person pays dues, he or she in return is negotiating some form of benefit, the mere fact that this guy is unable to make it as a bottom feeder in the American economy should alert the reader there was a switch and bait, “gotcha” game played.

The article becomes a little more honest: “The National Association for Law Placement released a survey last month showing an overall employment rate of 89 percent for 2009 graduates for whom status was known. That’s 3 percentage points below 2007’s historic high and the lowest rate since the mid-1990s. The group noted that the new number reflects increases in temporary and part-time employment.” [emphasis mine]

Meaning out of the thousands of alumni of the various law schools throughout the country that actually partook of the survey (could’ve been 50 or a 1,000) 89% were employed. If I went around and asked 10 people I knew were employed and they all said yes I can easily offer that out of the people I surveyed, 100% were employed, which by no means reflect the actual legal industry and broader economy.

“In good times, top law students were almost guaranteed good jobs based on first-year grades and their experience as summer associates.” Some of us didn’t know this game either, many first years’ would have saved tens of thousands of dollars in debt had they just quietly banished themselves from the law school game.

We can say, this is good that the curtain is being slightly lifted, but proceed with caution, note how the article makes it appear that this change in the legal industry just happened and it’s all due to the recession. The article doesn’t discuss the MASSIVE shift in the business aspect of practicing law nor does it mention the proliferation of law graduates in the past 10 or 12 years, yep it’s some extraordinary feat that only the economy is responsible for. Let us not forget cause and effect…this change in the legal industry was not by happenstance people.

The final advice that these blogs have been trying to inculcate in your head is summarized here: ”

Niels Schaumann, vice dean for faculty at William Mitchell College of Law in St. Paul, Minn., said: “The more urgent question is: What do you tell people who are thinking about going to law school?

“I don’t recommend it to people looking to make a lot of money. If you’re not interested in helping people in some way or providing service to your clients, it’s not for you.” [emphasis mine]

O.k., that was some honesty…but what could’ve been a little more accurate is: “I don’t recommend it to people looking to make a decent living or survive off an average lawyer’s salary.” There, that about does it.