Sallie Mae to lay off 2,500 as federal government bans private student loans

Radio Vice Online ^ | April 22, 2010 | Steve McGough

[Steve495]

Democrats in Congress don’t like middlemen; at least they don’t like middlemen in the private sector. The Obama administration and Democrats – exclusively – banned private banks and financial institutions from the student loan business, and 2,500 employees at Sallie Mae will loose their jobs.

Read the full story to learn more about Sallie Mae and how it went from a government sponsored entity (GSE) like Freddie and Fannie, to a private corporation, to a target of the Obama administration.

[Sacajaweau]

The government will now own your children...TOO MUCH POWER!!!!

[rhombus]

The government will now own your children...

I lost my child to the government 30 years ago.

[libertarian27]

They were also diversifying; I did not know they owned Upromise until today.

I didn't know that either....so what happens with the Upromise program now that they potentially could be defunct? Will Upromise be gobbled up by the government too? That'll be swell...../s

[Gun142]

..... 2,500 employees at Sallie Mae will loose their jobs.

?

[TruthShallSetYouFree]

2,500 employees at Sallie Mae will loose their jobs.

That sounds series, maybe even Hugh.

[Nachum]

The list, ping

[Little Pig]

I’m curious. I understand that the gov has taken over private student lenders. Does this mean they now service all existing loans as well? And has this all already gone into effect? I see a lot of stuff about it happening, but no timelines.

[Oldexpat]

They will just be transfered to Fannie and Feddie..who have alot of paper to shuffle.

[Steve495]

I assume it will continue, thanks to the company diversifying during the last few years.

[TChris]

The Obama administration and Democrats – exclusively – banned private banks and financial institutions from the student loan business...

Just how much fascism will our elected representatives wink at???

I mean, GOOD GRIEF!!

[Steve495]

Good question. I would assume lenders who have loans now will continue to service them. I believe the legislation applies to for future loans

[444Flyer]

Duuuuuuuuuuuuude...Obama wants us all to have a 'right' to education. Only HE can give us our rights...

Smoke gets in your eyes: An estimated 12,000 to 15,000 people all exhale marijuana smoke as the clock hit 4.20pm during the 4/20 event on Norlin Quad at the University of Colorado in Boulder.

*

(Seriously, this country is going to 'pot' under this despot.)

[ArmstedFragg]

A little too much fiber....

[moose2004]

2,500 in addition to these 1,000 new unemployed:

http://cityroom.blogs.nytimes.com/2010/04/19/lawsuit-aims-to-keep-st-vincents-open/

[SJSAMPLE]

The Sallie Mae building is about 2 miles from my house. I pass it on the freeway every day going to work.

Huge buildiing with a huge support complex.

Yeah, the government is going to do it cheaper.

[Grumpybutt]

I’m not sure. All I know is that we just had to fill out the online thing for my son. I was shocked to see the amount of $$ the gov’t says I can afford to send him to college. All I could say was “whiskey tango foxtrot”. Don’t know what universe they base their accounting on, but it sure isn’t the same one our budget is in.

[mlocher]

Democrats in Congress don’t like middlemen;

They prefer huge, burdensom, inefficient beaurocracies.

[apillar]

Let me get this straight, when my kids go to college if I need to take out a loan, I had better lie to the bank and say it’s for home improvements or something because they can’t legally lend me money for college ?!?

[Signalman]

2,500 employees at Sallie Mae will loose their jobs.

Good thing they won't lose their jobs. That would be even worse.