WASHINGTON -
Today, Congressman Paul E. Kanjorski (PA-11) congratulated Sallie Mae on
obtaining significant new business which will likely require additional
employees to address student loan servicing needs. Congressman Kanjorski strongly urges Sallie
Mae to hire more employees at the company's facility in Hanover Township,
particularly to rehire those that were laid off, as that facility does a
majority of the student loan servicing for the company. Salle Mae recently purchased $28 billion of
securitized federal student loans and other assets from a subsidiary of
Citibank. After the transaction, the
company will have 1.3 million new customers and will need to hire more
employees to assist with the increased workload. It will also manage or service about $200
billion in federal student loans.
"Since I first joined Congress, one of my top priorities has been to
create and save jobs in Northeastern Pennsylvania, and that goal will not
waver," said Congressman Kanjorski. "It
is reasonable to believe that some of these new positions will be filled at
Sallie Mae's facility in Hanover Township since so much of the company's loan
servicing activities take place at that location. I strongly encourage Sallie Mae to rehire its
former employees that were, unfortunately, laid off. We face difficult economic times, and we must
work to maintain solid jobs in Northeastern Pennsylvania to help the many
unemployed workers and families that are struggling. I am doing everything that I can to encourage
Sallie Mae to move in the right direction by bringing many of these jobs to
Northeastern Pennsylvania and rehiring some of its former employees in the
area."
A report by the Buckingham Research Group, which was commissioned by
Sallie Mae, states that Sallie Mae's purchase of the new student loans will
help them to work to rectify many of the layoffs that occurred at some of their
facilities, which should include Hanover Township. Sallie Mae expects the transaction to close
by the end of 2010.
In previous months, Congressman Kanjorski had expressed his strong
disappointment with the U.S. Department of Education for not preventing job
losses at Sallie Mae's facility in Hanover Township, and with Sallie Mae for
deciding to cut jobs at its servicing center in Northeastern Pennsylvania even
though it continues to service loans at the facility and nationwide.
Click here
to view Congressman Kanjorski's statement for the Congressional Record on the
health care reform legislation. In it,
he states that he was, "greatly disturbed when the student loan legislation was
hastily attached to the health care reform bill at the last minute because of
the impact it would have on the 1,100 Sallie Mae workers in my
district...Education Secretary Arne Duncan assured me that he will use all of the
tools at his disposal to help ensure that these workers will remain
employed."
Congressman
Kanjorski voted against H.R. 3221,
the Student Aid and Fiscal Responsibility Act of 2009, which passed the House
in September 2009. Click here
to view his statement on H.R. 3221.
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Click here to view a letter from U.S. Education Secretary Arne Duncan to
Congressman Kanjorski from March 20, 2010 stating that the U.S. Department of Education will work to
help preserve the jobs at Sallie Mae's facility in Northeastern Pennsylvania. Click here to view a press release from Sallie
from September 17 announcing the new business.
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