WASHINGTON, D.C. – Today U.S. Rep. George Miller (D-CA), the chairman of the House Education Committee and the author of student loan reforms that would end wasteful taxpayer subsidies for banks and instead invest that money directly in students, called out Sallie Mae for continuing to spread misinformation in an effort to kill the bill in the Senate. The House passed the legislation last night along with historic health insurance reforms; the Senate is expected to vote on the legislation this week.
“Sallie Mae has a history of using scare tactics to hold on to their excessive taxpayer subsidies, bloated CEO salaries and perks, and well paid cadre of Washington lobbyists. Judging by their statements today, it is clear that Sallie Mae will continue to do or say anything in a last-ditch effort to save their sweetheart deal – billions of dollars that we think would be better spent directly helping students pay for college.
“In truth, under this legislation Sallie Mae stands to gain millions of new borrowers to service as a vendor under the Direct Loan program, as long as they provide high-quality services to their customers. In fact, Sallie Mae recently brought 2,000 jobs they had shipped overseas back to America to compete for and win their current Direct Loan servicing contract. They know that Direct Loans, unlike loans originated by banks, can only be serviced by U.S. workers – and will help keep jobs in local communities.
“Sallie Mae’s efforts to use their own employees to lobby against these reforms were exposed in a recent news story. According to workers at an Indiana servicing center, Sallie Mae executives used the threat of job losses to pressure their employees to lobby against these reforms, while privately admitting their jobs were not in danger. It is shameful that company executives are playing politics with an issue as sensitive as job losses and trying to pit their own workers against middle class families seeking access to college.”
Sallie Mae’s mixed messages on jobs and lobbying efforts were revealed in an article by Campus Progress last week. To read the full story, click here:http://www.campusprogress.org/fieldreport/5216/indiana-sallie-mae-outlet-gets-mixed-messages-on-jobs.
BACKGROUND
For months, banks have been making false claims about the legislation’s impact on jobs. In reality, this legislation will help protect and keep jobs in America. Under the bill, 100 percent of Direct Loans will be serviced by private lenders, which will maintain demand for workers.
Unlike loans made by banks, Direct Loans can only be serviced by workers in the U.S. Last year, Sallie Mae was forced to bring 2,000 jobs back to U.S. soil to win a direct loan servicing contract. Sallie Mae is now one of four private banks servicing 4.4 million direct loans.
“In truth, under this legislation Sallie Mae stands to gain millions of new borrowers to service as a vendor under the Direct Loan program, as long as they provide high-quality services to their customers. In fact, Sallie Mae recently brought 2,000 jobs they had shipped overseas back to America to compete for and win their current Direct Loan servicing contract. They know that Direct Loans, unlike loans originated by banks, can only be serviced by U.S. workers – and will help keep jobs in local communities.
“Sallie Mae’s efforts to use their own employees to lobby against these reforms were exposed in a recent news story. According to workers at an Indiana servicing center, Sallie Mae executives used the threat of job losses to pressure their employees to lobby against these reforms, while privately admitting their jobs were not in danger. It is shameful that company executives are playing politics with an issue as sensitive as job losses and trying to pit their own workers against middle class families seeking access to college.”
Sallie Mae’s mixed messages on jobs and lobbying efforts were revealed in an article by Campus Progress last week. To read the full story, click here:http://www.campusprogress.org/fieldreport/5216/indiana-sallie-mae-outlet-gets-mixed-messages-on-jobs.
BACKGROUND
For months, banks have been making false claims about the legislation’s impact on jobs. In reality, this legislation will help protect and keep jobs in America. Under the bill, 100 percent of Direct Loans will be serviced by private lenders, which will maintain demand for workers.
Unlike loans made by banks, Direct Loans can only be serviced by workers in the U.S. Last year, Sallie Mae was forced to bring 2,000 jobs back to U.S. soil to win a direct loan servicing contract. Sallie Mae is now one of four private banks servicing 4.4 million direct loans.
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