Federal Loan Proposal Would Cost Hoosiers

With all the attention on health care reform, cap and trade, and other widespread federal issues, little notice has apparently been given to a proposal that would directly eliminate Indiana jobs.

President Obama announced earlier this year the intention to do away with private origination of student loans, turning the job over completely to the U.S. Department of Education. Based on past experiences in various areas, do we really want the government running this program?

I don’t claim to know a great deal about the process (it has been 25 years since I exited Ball State and began paying back a fortunately small amount). I expect to learn a lot more in the coming months as the parent of a high school senior who, despite excellent grades and likely scholarships, will be entering the borrowing world in some phase.

What I do know is that Sallie Mae employs 2,300 Hoosiers, with the company reporting a $148 million payroll in 2008. In addition to the Fishers operation, there is a fairly new facility in Delaware County. Throw in related non-company jobs and the impact grows.

It’s all (or should be) about students and supporting their abilities to complete their higher education. The administration proposal would seemingly minimize options and be an obstacle toward that ultimate goal. And there are those Hoosier jobs.

One thought on “Federal Loan Proposal Would Cost Hoosiers

  1. The government has not been able to run social security, welfare, or any other major social structure issue in the past 100 years. What makes them think they can run student loans? Regulate it fine. Take it over? Where is our free competition? Student’s have choices at this time created by competition of originators and some helpful government incentives (thank you keep up the good work Uncle Sam and stay where you are). Government running anything takes away this competition and student choice!

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