Founded as a government sponsored enterprise, SLM Corp. which is better known to students as Sallie Mae, has helped millions of students fund their college education through its portfolio of student loans. Operating under the tag line, Champions For Higher Education, Sallie Mae has gained a reputation for opening the doors of higher learning for people who might otherwise not be able to attend college.
Established in 1972, SLM Corp. began to privatize its operation in 1997, reaching full independence from the federal government in 2004. Today, the company helps more than ten million students and borrowers, servicing well over 100 billion dollars in loans.
Consumer Warning Network Speaks Out
A consumer watchdog group, Consumer Warning Network, has been taking Sallie Mae to task for outsourcing thousands of jobs overseas. Currently employing more than 12,000 people, Sallie Mae has been sending jobs to India and the Philippines even as it receives the benefit of federal support in the form of subsidized loans.
Thanks to consumer pressure, Sallie Mae has reversed course and plans now to bring as many as two thousand jobs to the United States. According to the Consumer Warning Network, the company’s change of heart came about as it seeks a federal contract worth at least $200 million a year. Given the current economic and political climate, it is unlikely that companies with offshore operations could win the work, given the “challenging” personnel and system security requirements, said Chris Greene, a spokesman for the U.S. Department of Education in response to questions from the Consumer Warning Network.
Additional Student Loans Will Need Stateside Servicing
President Obama recently proposed fundamental changes to the education system that would increase the number and volume of federal student loans that need servicing. The servicing will likely be done by the private sector, said Mike Whisler, the administrator overseeing the new education contract.
Despite record unemployment in the United States, Sallie Mae, the country’s largest student lender, routes payments, complaints and applications for these loans as well as their sensitive personal and financial information to processing centers in Bangalore and Pune, India. It also directs loan questions to Baguio in the Philippines.
Adv. — Is your family experiencing a financial shortfall this academic year? Scholarships, grants, 529 money, and part time work may not be enough. Learn about private student loans by visiting SayStudent.com, your portal for college financial assistance. We have free tools for your download and updated information about current college financing requirements.
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