Pocono News Section

Sallie Mae fears job cuts

Sallie Mae fears job cuts - Tuesday, August 18, 2009 at 6:18PM EST

Tuesday, Aug 18, 2009 @ 06:18pm EST
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Nearly one thousand Luzerne County jobs could be in trouble.

That's what leaders at Sallie Mae, one of the largest student loan lenders says.

A proposal in congress could change the way school loans are delivered to students.

One of president Obama's campaign promises was making college more affordable.

A new proposal in congress would partially cut private companies out of the college loan process.

Some say it would make loans cheaper, but Sallie Mae leaders say they have a different solution.

Lorraine Heydt of Ashley has worked at Sallie Mae in Wilkes-Barre for 22 years.

"I see our students graduate from high school and college and come here to work so it's very important for people who want to remain in this area to be able to provide for their families," says Heydt.

Heydt thinks companies like Sallie Mae shouldn't be removed from the student loan process.

A proposed bill in congress would allow students to borrow loans directly from the government.

The goal is to lower student loan interest rates, making college more affordable.

Sallie Mae employees say that could cost jobs.

Emily Pollick of Swoyersville said, "I think competition is important. I think people like choices. Sallie Mae and other student loan servicers like Sallie Mae give people choices."

Pollick joined the nearly one thousand workers at the Wilkes-Barre site for this rally.

They wore shirts saying “Protect Pennsylvania Job”.

Sallie Mae's CEO talked about how his company can provide better loan services than the government.

Sallie Mae CEO Albert Lord said, "We think the best way to approach this is we do what we do best, they do what they do best."

Sallie Mae officials say the company can handle students defaulting on loans better than the government.

Congresses proposal isn't finished yet.

Law makers will likely meet with loan companies this fall to hammer out differences.

About 25 percent of colleges and universities borrow from directly from the government for student loans.

This proposal would make all schools borrow by those standards.