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Sallie Mae To Return Support Jobs to U.S.

College lender Sallie Mae plans to add some 2,000 jobs across the U.S. for call center, information technology and operations support staff, by returning its overseas operations to the U.S.

The publicly traded company, whose formal name is SLM Corp., says it expects to hire these employees over the next 18 months. It currently employs more than 8,000 people at 20 U.S. locations.

Chief Executive Albert L. Lord said in a press release: "The current economic environment has caused our communities to struggle with job losses. They need jobs, and we will put 2,000 of them into U.S. facilities as soon as we possibly can."

Sallie Mae is the nation's largest student lender. Launched in 1972 as a government-sponsored enterprise, the company began privatizing in 1997 and eliminated its remaining federal government ties in 2004.

Although private, Sallie Mae is still involved with government programs. It channels low-interest federal loans to students under various programs that account for almost one-third of its income, according to The Wall Street Journal. The Obama administration's proposed budget would reduce the role of private lenders such as Sallie Mae in making federal student loans.

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AUTHORJon Jacobs Insider Comment
  • Al
    Alexander
    15 April 2009

    Rob:
    WHAT IF the incremental increase in expenses due to the onshoring of the 2000 jobs were less than the potential incremental decrease in revenues resulting from a hypothetical withdrawal of US government support of the company? Wouldn't that benefit the bottom line, the survivability of the company, and the shareholders?

  • Ro
    Rob
    9 April 2009

    What exactly is the lesson Citigroup should be taking?

    Sallie Mae's outsourcing is done in India which is an entirely different operation than outsourcing ops in Ireland. And the ONLY reason Sallie Mae is making this move is because the Obama administration has threatened to cut Sallie Mae out of the student loan business by giving federal loans directly to borrowers.

    This is business as usual politics. Sallie Mae brings jobs to congresspersons districts in exchange for support on capitol hill. This is NOT good corporate OR civic governance. It will hurt Sallie Mae's bottom line and ultimately hurt shareholder value but when you have the federal government threatening to shut you down I guess Sallie Mae has no choice. I'm not a former Citigroup employee but my guess is Citigroup doesn't rely on federal loans as a significant past of their business and therefore the same threats don't apply to them so there is no lesson for Citi here.

  • AF
    A Former Employee
    8 April 2009

    Citigroup should take a lesson from this. They just outsourced some jobs to Ireland.

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