News
Thursday, September 9, 2010
Workers protest to save their jobs
Sallie Mae employees oppose change in lending
By Andrew M. Seder aseder@timesleader.com
Times Leader Staff Writer
SCRANTON – More than 350 employees of the Sallie Mae office in Hanover Township, all being paid, went on the road Tuesday to protest a proposed change in student lending the company says could cost thousands of jobs.
Workers from Sallie Mae stand outside the office of U.S. Sen. Arlen Specter on Spruce Street in Scranton Tuesday morning to voice their concerns about legislation that could eliminate Sallie Mae jobs.
Clark Van Orden/The Times Leader
With a congressional vote near, the employees went to Scranton and Clarks Summit to meet with staffers in the offices of U.S. Sens. Arlen Specter, D-Philadelphia, and Bob Casey, D-Scranton, and U.S. Rep. Chris Carney, D-Dimock Township.
Wearing blue shirts with “Protect Pennsylvania Jobs” across the front, they loudly chanted “save our jobs” and cheered when motorists honked their horns in support.
At issue is the federal subsidy to private, for-profit lenders like Sallie Mae to make loans to college students that the government itself can make directly. Eliminating the subsidy is expected to save between $47 billion and $87 billion over the next 10 years, according to figures used by The White House and the Department of Education. President Barack Obama has proposed using the savings to expand direct grants to needy students.
“We brought out what we felt was a representation of the jobs that might be lost here,” said Troy Standish, senior vice president of servicing operations at Sallie Mae’s local site, which employs 1,100. He said not only is there concern about the bill itself but even more concern by the prospects of having it tied in with a vote on health care reform.
Sallie Mae would continue to service student loans under the administration’s proposal, and the company has never said how many local jobs would be at risk. Few jobs at the Hanover Township office are tied directly to loan origination but it is the company’s main loan service center.
Standish, 35, of Mountain Top, asked Specter’s Northeast Regional Director, Andy Wallace, to relay a message that the two matters should be treated separately.
Standish was joined in Specter’s office by fellow Sallie Mae employees Lisa Stashik of Alden, Jeff Stine of Mountain Top, Josh Courter of Wilkes-Barre and Mark Steinkirchner, of Duryea. He told Wallace to express to Specter that, “We really need his support.”
“We are looking at the issue very closely,” Wallace told the group. “It is timely …. We realize you’re concerned about your jobs.”
Casey spokesman Larry Smar said the legislation is still being finalized.
“Sen. Casey has been and continues to be very concerned about the employees in Wilkes-Barre. A lot will depend on what the House does this week,” said Smar.
Stashik, 42, said more than jobs are at stake.
“It would not only affect us but the community. It would have a huge ripple effect if something like that happens,” she said.
“It’s time to make a decision and hopefully make the right one,” Standish said. “To me it’s a no-brainer. Save jobs, save money, save competition. Sometimes politics doesn’t work that way, though.”
Andrew M. Seder, a Times Leader staff writer, may be reached at (570) 829-7269.
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33 COMMENTS
Larry Vanchieri said...
Too bad ! Let Sallie Mae figure another way to suck billions of taxpayer dollars off Uncle Sam
Proud Sallie Mae Employee said...
Larry, maybe you should loose your job if you havent already!!!!Sounds like you support the "New America" no freedom...and no right!!!!!
DIsgusted to Proud said...
It's the economy stupid! To fix it we need to save money where it is wasted or can be more efficiently done. Like cut out the middleman. Some will lose their jobs, but that is life. If everyone who has a job will not lose it, the economy will never get fixed. This is not about "freedom" and "rights" - those are guaranteed in the constitution but a government job is not guaranteed. You have the freedom to go find another job and the right to work whatever shift you want. Try the private sector for a change.
phyllis said...
Larry, the question is do you have a job? If not then you are "sucking" tax dollars off Uncle Sam as well....
Shane Novak said...
Sallie Maie is an eight-legged vampiric blood sucking creature from the bowls of hell.
In debt said...
Let's look at the big picture. This would save billions, yes. But it would help out so many future college students all over the country. This generation of college grads are in debt because of for-profit lenders. This would help young americans financially be able to continue to grad school, etc without the fear of supporting their families after...
disgusted with gov't. said...
I agree with the Sallie Mae people...what business is an education matter doing in a health care bill? More government controls is definitely what we don't need. They try to sneak things through by putting it in another bill, because the average person won't notice it then. This is just another way to hurt the middle class student.
Jim said...
Hy Larry get a life we dont need more people in this area or any other part of the country to be out of work. Ill beat that you suck a lot out of the govt yourself.
Chazz said...
And who pays Sallie Mae salaries? Thats right, Sallie Mae versus taxpayers paying the salaries of federal employees along with the red tape the government has. Students better be applying for student loans at least two years prior to starting college with the government involved.
I'm John Senchak, and I disapprove of Sallie Mae said...
These people are protesting jobs that pay between $9 to $10 an hour which in this day in age can NOT support a family. Furthermore, what people don't know about Sallie Mae is any position there comes with a very high standard of a vetting process which is not warranted for jobs that are only customer service related.
James said...
Larry, how would 400 people laid off help the Wyoming Valley? If not SallieMae, it will just be another company doing the same thing. Use your brain...
PREVIOUS MEDICARE EMPLOYEE said...
ULTIMATELY THE GOV'T WILL NOT SAVE MONEY...THEY WILL HAVE TO PROCURE A CONTRACT WITH SOME COMPANY OR COMPANY THAT PROVIDES AND SERVICES STUDENT LOANS TO HANDLE IT FOR THEM...JUST LIKE MEDICARE CURRENTLY DOES..DO YOU SEE A BUILDING WITH "MEDICARE" WRITTEN ON IT LIKE THE "IRS"? AND THERE WON'T BE ONE THAT SAYS "STUDENT LOANS" EITHER. GOV'T WOULD DO WELL DO ALLOW THE CURRENT LENDERS AND SERVICERS TO CONTINUE HANDLING THE LOANS THEY ALREADY PROVIDE TO THE STUDENTS. THE BIGGER ISSUE IS THE FOV'T NEEDS TO INCREASE THE AMT THE STUDENTS CAN GET ON THEIR OWN WITHOUT THEIR PARENTS HAVING TO SIGN FOR THEM. IT COST A LOT OF MONEY TO GO TO SCHOOL AND CURRENT FEDERAL LOANS WILL NOT COME CLOSE TO PAYING FOR IT...TALK TO YOUR CONGRESSMAN ABOUT THAT...GET THE INCREASE FOR THE STUDENTS SO THEY CAN FINISH SCHOOL
JSN said...
Hey if the numbers int the story aren't bogus, lets agree to pay these guys $100,000 each for the next 10 years while they look for new jobs and save the tax payers $46,650,000,000. 350 lost jobs at $100,000 per year for a decade verses saving 46.65 BILLION. You tell me.
Tony Pepperoni said...
People want government out of their lives until it affects their jobs. Then they're all for government welfare, which is what this is. Go get a REAL job and stop leeching off of the taxpayers. I know people whose lives have been ruined by salle mae and their ineptitude
someone who takes the time to learn the facts said...
First of all "good understandings make good friends" SALLIE MAE IS NOT A GOVERNMENT JOB....just like the jobs that used to be in the Kanjorski Bldg were'nt gov't jobs they are contractual agreements with companies that handle business for them...in this case the Gov't needed lenders to handle their loans.. Do you not see that if the Gov't has to create their own gov't operated entity it will eat up any savings this article speaks of...instead of beating up the lenders let's help the students..currently it is miminal federal funding if any after the Govt't looks at their FAFSA ...after that they have to try to find private funding for the rest...all you people with nothing better to do should look up cost of attendance for some of the schools whose names you see and hear on a daily basis...talk about shock factor....come on lets come up with a plan to help the students without this edge they won't be able to survice much less get ahead
James said...
Lets do something pretty much unheard of in this area: USE YOUR BRAIN! Please show me ONE govt. run plan that operates well and without problems! Medicare? Medicade? Social Security? Each one a money bleeding boondoggle! Look at Washington! CONgress is filled with criminals! Do you think student loans will be processed better by the govt.!? Open your eyes people! And for the record, SallieMae employees may work for the govt. but they are NOT govt. employees!
Proud to work for a great company said...
Larry...on the topic of Sallie Mae employees losing their jobs...this county's unemployment rate is high enough why add to it. There are alot of peoples jobs at risk not just in Pennsylvania but in other states as well, if they pass this. Maybe you dont value your job or provide for your family but Americans who work and have a job, do. Sallie Mae values their customers and assists student through the life of their loans. There is no nead whatsoever to include the student aid reform with the healthcare, dont you see the impact this will cause? Student loan reform should be a seperate issue and has nothing to do with healthcare.
Pringle Hill said...
If I read this article correctly, these 350 protestors were being paid while they were protesting? That being the case, we should fire these 350 for walking off the job. It is rather obivious that these jobs are not needed if these people can protest instead of doing what they are supposed to be doing.
Anonymous said...
Pringle... I was one of those protestors. You are a moron with a closed mind. Who else would have stood out there and protested? You? Please! We are Sallie Mae and we are here to stay!
proud employee said...
For everyone's information, the employees that work at sallie mae work just as hard at their jobs as any other hard working american. So why should we be critized for trying to save our jobs. Obviously the people that have spoken negatively about sallie mae must be the ones that have nothing better to do with their lives, or are probably collecting unemployment.
4 Your Information said...
Pringle Hill...please understand...Sallie Mae is not a Gov't entity...It is privately owned...and oh by the way Sallie Mae is not one of the financial institutions that got bailed out..so how do you go about firing people who work in the private sector..maybe you would like to get a job there...they are hiring..at least they are working and not draining more money out of the unemployment bank like a lot of Pennsylvanians who by the way should be policed to ensure they are are really trying to find employment...you might want to contact Sallie Mae and suggest the firing of their employees who were provided the bus and lunch to go to Scranton because 1 job lost is 1 too many...
LLTaxpayer said...
Anonymous - who was doing your job while you were protesting? Nobody. So at a minimum you should be required to stay late today to finish the work you did not do while you were protesting. Or get fired for insubordination.
Tommy said...
We got free pizza for demonstrating. I love this company.
anon said...
in regards to this comment... "If I read this article correctly, these 350 protestors were being paid while they were protesting? That being the case, we should fire these 350 for walking off the job" ...tell me you wouldn't protest if you were losing your job? or are you one of those poor snots who live off the county! speak before you mind.. we love our jobs here at salliemae!
KM said...
"Kids are in debt because of for profit lenders"??? I'm sorry. Did they not use the money from the student loan to pay for their education? Didn't the student loan pay for a tuition bill that was set by their Not for Profit college? Should someone else have paid for their education for them ? So, it's not the fault of the college that charged an outrageous tuition, it's instead the fault of the company that lent them the money. Should Sallie Mae have just given them the money with no requirement to pay it back ? That's called a scholarship and the Not for Profit school that charged the outrageous tuititon should have offered that from their millions in their "Rainy Day Fund" (which by the way, they pay no taxes on - capital gains or otherwise).
Georce Recco said...
Yes, let's keep this Corporate Welfare System going, so long as it preserves a few hundred jobs. And executive bonuses, corporate jets, campaign contributions, and financial aid officers' kickbacks.
EyeOnYou said...
What the country doesn't need is government jobs. That has the tone of socialism. This is the U.S.A. where rugged individualism and capitalism rule. Government regulation is too overbearing.
masie sue said...
r u trying to saVe your job at the expense of the poor college students do you care about the future they hold do you have a child in college or are you only concerened about yourself and your 9 dollar an hour job why sm is making millions off our kids
Done Deal said...
If it come this far it's already done. No Senator or Congressman can do anything about it. I like how they say between 47 and 87 billion over the next ten years when they plan on giving the money to needy students. The needy students aren't paying now.
Tony's pepperoni said...
Look at that picture. Looks like a mutant's convention lol!
RRfan77 said...
AS a sallie mae employee who attended the demonstration, I can say that most of the people commenting on this article have no idea what they are talking about. This does not affect Private Student Loans but rather the origination of Federal Loans. All I can say is they treat their employees like human beings, compared to most of the other places I have worked in this area over the last 15 years. And how will my family get by if I lose this job? I have waited a long time to have an opportunity like this and I don't want to take two steps backwards in life and career for a proposal which may not even save any money versus another solution. Seriously people, we are not government employees. Sallie Mae has been a private corporation for many years. And what do we know about government jobs? Usually high paying, better benefits, more time off, and it doesn't help if you have a connection to get into one. How is that going to save money?
I.J. Reilly said...
I have just read in The Buffalo News that this government take over of Sallie Mae's functions may become part of the health bill package. As such, the statements by the 3 politicians seem to indicate that they are not aware of this, or are out and out liars. A socialistic health program coupled with changing a private business into a governmental bureaucracy ( another elimination of free enterprise in favor of government inefficiency) in the same bill, indicates the downward slide of the USA towards who knows what? The article that I referred to can be found at: http://www.buffalonews.com/2010/03/18/991207/300-workers-protest-student-loan.html This reflects what "disgusted with government said....."
alberts greenskeeper said...
Sallie Mae is a redundant set of middlemen who are not needed. The ffelp is already a government program that is scandal and fraud ridden. Time for change. The muckraking that Sallie Mae has initiated to scare employees is ridiculous. It was revealed at their Muncie operation that they enticed workers to protest then it was revealed none faced job elimination. That's the type of integrity one gets from Sallie Mae - none whatsoever. So long ffelp.