From WJHG:
"Yesterday, Congressman Allen Boyd announced the U.S. Department of Education is looking into new work opportunities for hundreds of Sallie Mae employees...In a letter from Department of Education Secretary Arne Duncan, Duncan points to several options including the default recovery service contract."
Here was a statement from Rep. Boyd (who ultimately voted for SAFRA):
"It is my hope
that Sallie Mae will pursue any and all options that would keep out
friends and neighbors in Lynn Haven employed during these tough
economic times. If national Sallie Mae will commit to putting any new
work at the Lynn Haven facility, I will continue to advocate for them
and the important work they do in Bay County to the Department of
Education."
Recall that Lynn Haven employees were focused on origination activities while the "default recovery service contract" presumably refers to Sallie Mae's contract as one of 22 private collection agencies (PCAs) to collect on defaulted federal student loans. Presumably that business will get a big boost when the federal loan program goes 100% direct lending on July 1, 2010.
So, what does Sallie Mae have to say about Rep. Boyd's claims of job opportunities:
"With the
government now taking over one-third of our business and without any
specific commitments or even a timetable for procurements of future
work. We are left with the painful reality of these legislative changes
and the difficult responsibility of proceeding with the orderly
restructuring of our operations," Rick Castellano, Director of Public
Affairs for Sallie Mae said."
Hmm...do you get the sense that Rep. Boyd might be posturing a bit for re-election? Kinda sounds like "I was for keeping Sallie Mae jobs in Lynn Haven after I voted against keeping those jobs here." The company doesn't seem to be playing along. The article goes concludes with "We're told the
first round of layoffs at the Lynn Haven call center could come as
early as July. No word yet on how many employees will be the first to
go."
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