Now that SallieMae buy-out deal has crumbled and they’re facing much higher borrowing costs due to the subprime fiasco, the unpopular student lender will shed 3% of its workforce, or 350 jobs, mostly CSRs at their call centers.
Back in April, we told you that Sallie Mae was going to be sold to JP Morgan Chase and Bank of America for around $25 billion. Now JP Morgan Chase and Bank of America want to bargain, and Sallie Mae is now suing its potential buyers in an attempt to force them to honor the original deal.
Sallie Mae’s potential buyers gave the nation’s largest student lender until Tuesday to consider their reduced buyout offer in light of what they said was “the new economic and legislative environment that faces the company.”
The New York Times has an article explaining some of the reasons that private loans are both more popular and more risky that they really ought to be.