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Sallie Mae rallies over jobs in Fishers

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Sallie Mae CEO Al Lord visited the company's Fishers office this morning in his latest effort to get the word out that his business and his employees' jobs are threatened by a government proposal.

The Virginia-based private student lender, which employs 1,600 in Fishers and 700 in Muncie, fears massive job cuts from President Barack Obama's plan to bring student lending under government control.

Sallie Mae and other lenders that create and manage student loans would no longer receive government subsidies and would be relegated to just servicing the loans. The Obama administration says the plan would save the government $47 million during the next 10 years.

If the plan is approved by federal lawmakers, Sallie Mae said it could cut about one-third of its 8,500 employees nationwide and close some offices.

Jon Kroehler, a Sallie Mae vice president and the company's top executive in Indiana, is uncertain how many jobs could be affected in Indiana, however.

"It would force the company to take a fresh look and go through a complete restructuring," Kroehler said. "Indiana is definitely the state in which the largest number of employees lives today."

Sallie Mae and other private lenders counter that the government could save as much money by allowing them to continue originating loans but no longer receive federal subsidies.

The rally at the Fishers office follows another the company conducted yesterday with employees at its Muncie location. The events weren't open to the public, but some public officials were invited to talk to employees.

"They understand that there is a critical decision being made by Congress right now that impacts their jobs and the way student loans are delivered in this country," Kroehler said.

Lawmakers could vote on the proposal in November during budget proceedings.
 

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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