Sallie Mae Lost $104 Million in Quarter

[struggle4progress]

Source: Associated Press

Published: April 17, 2008

WASHINGTON (AP) — The student lender Sallie Mae said on Wednesday that it lost $104 million in the first quarter, falling short of Wall Street’s expectations amid a severe disruption in the student lending industry ...

Sallie Mae has suffered since last year from financial losses, a failed buyout and a reshuffling of top management.

In January, the company said it was becoming more selective about student loans and was stressing the importance of graduation to predict students’ likelihood of repaying their debts.

“Today’s environment is the most difficult we have seen in our 35-year history of student lending,” Albert L. Lord, the chief executive, said in a statement.

Read more: http://www.nytimes.com/2008/04/17/business/17sallie.html?ref=business

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Sallie Mae Reports Loss; Cut 1,000 Jobs in Past 6 Months

By David S. Hilzenrath
Washington Post Staff Writer
Thursday, April 17, 2008; Page D03

Sallie Mae, the nation's largest student loan company, eliminated about 1,000 jobs over the past six months, representing about 9 percent of its workforce, the company said yesterday.

The layoffs are part of Sallie Mae's continuing effort to cope with cuts in federal subsidies, the collapse of a planned sale of the company and an upheaval in the financial markets that has made it costlier for lenders to fund their business.

"Under current conditions . . . loans can only be made at an economic loss," the company said in a news release announcing its financial results for the first three months of 2008 ...

http://www.washingtonpost.com/wp-dyn/content/article/2008/04/16/AR2008041603503.html

[adjee123]

1. WOW!

Wow, that is a lot of money.

[Inspired]

2. Who didn't lose money?

I was going over the quarterly statement of my 401K investments. I lost thousands and I don't have thousands to lose. I am very, very worried.

[Viking12]

3. You should look into socially responsible funds...

Mine have been performing well above most indexes for several years.

[Inspired]

4. I am not knowledgable. What is considered socially responsible?

My only investment is my 401K. It is ran by TRowe Price. Obviously I need a quick education!

[Viking12]

6. Quick summary

From Wikipedia:
Socially responsible investing describes an investment strategy which combines the intentions to maximize both financial return and social good. In general, socially responsible investors favor corporate practices which are environmentally responsible, support workplace diversity, and increase product safety and quality. Some (not all) also avoid businesses involved in alcohol, tobacco, gambling, weapons and other military industries.

One of the Socially Resposible Investment houses:

http://www.calvert.com/sri.html

[izquierdista]

5. How can they lose that many

416 million quarters is a pretty big pile; you think somebody would have seen it. :shrug:

[sandyd921]

7. Won't get any sympathy from me

I've been paying them on a total of $34,000 in loans for grad school since 1991. I figure that with the interest and late fees from times when I was tapped out I will have repaid the principal three times over by the time I get the loan completely paid off in 2012.