Sallie Mae wants loan-reform changes

nside the Delaware offices of Sallie Mae, more than a few workers are all too familiar with the realities of "downsizing," thanks to their days working at the state's shrinking credit card banks.



But this time, the threat to their jobs isn't coming from within.

The executives and employees of the student lender -- which employs 640 at the Stanton center it opened last year -- say the real danger is in Washington, where lawmakers are considering a bill that would hand much of the lender's business over to federal bureaucrats.

On Monday, they rallied employees and launched a petition drive to have the bill changed.

"Sallie Mae is happy here in Delaware," Al Lord, Sallie Mae's CEO, told employees at the rally. "The company nonetheless needs your help. ... What we're really talking about is growing or not growing. I have very big and very positive plans for Delaware."

That plan eventually could include making the Delaware site one of five main Sallie Mae outposts as part of a companywide facility consolidation, he said. That possibility would dim if Congress approves the bill requiring that all federally subsidized student loans be made directly by the government, a step the Obama administration believes will save $87 billion over 10 years.

While conceding that some change is inevitable, Lord said he wants Congress to consider an alternative bill that would achieve savings by putting government in charge of raising capital for the loans, while Sallie Mae and others retain their roles in making and servicing the loans.

For that to happen, Sallie Mae has said, the support of Sen. Tom Carper will be crucial. Sallie Mae wants Carper to introduce the alternative legislation, but hasn't won a commitment despite persistent pressure.

"We're told in Washington that he's the guy that can make it happen," Lord said. "But no one wants to appear to be taking on the president now."


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