Responding to the Obama administration’s education reform legislation, which was passed in conjunction will the highly controversial healthcare bill, officials with the student loan giant Sallie Mae told Fox News on Tuesday that layoffs in the private sector are imminent.
"The student loan provisions buried in the healthcare legislation intentionally eliminate valuable default prevention services and private sector jobs at a time when our country can least afford to lose them," Conwey Casillas, vice president of public affairs for Sallie Mae, told the news source.
As part of the new bill, known as the Healthcare and Education Affordability Reconciliation Act, the federal government will bypass financial institutions and will begin lending directly to students, effectively eliminating a large percentage of Sallie Mae’s dwindling profits.
Meanwhile, Obama continued to express his disdain for large banks and other financial institutions, referencing the fact that Sallie Mae spent $3 million last year to lobby against the legislation.
Casillas estimated that the student loan powerhouse will be forced to layoff approximately 2,500 employees by the summer to compensate for their expected losses.