Post by Logan on Jun 19, 2016 2:01:24 GMT -6
The Vermont Student Assistance Corp. says it will lay off about 55 people because it has decided to stop servicing loans the federal government makes directly to students.
VSAC said it wasn’t making enough money on the program.
“Despite our best efforts, and becoming one of the top federal loan servicers in the country, VSAC has not been allocated sufficient loans to be able to break even on the servicing costs and generate revenue to support mission-related activities,” said Scott Giles, president and CEO.
Under the direct loan program, the federal government lends money to students and pays contractors like VSAC to administer the loans.
VSAC was one of 11 nonprofit and for-profit servicers, selected through competitive bidding. It was allocated 190,000 loans to service, but only 294 of those were for Vermonters.
Read more: vtdigger.org/2016/06/16/vsac-cutting-55-employees-as-part-of-refocusing-mission/
VSAC said it wasn’t making enough money on the program.
“Despite our best efforts, and becoming one of the top federal loan servicers in the country, VSAC has not been allocated sufficient loans to be able to break even on the servicing costs and generate revenue to support mission-related activities,” said Scott Giles, president and CEO.
Under the direct loan program, the federal government lends money to students and pays contractors like VSAC to administer the loans.
VSAC was one of 11 nonprofit and for-profit servicers, selected through competitive bidding. It was allocated 190,000 loans to service, but only 294 of those were for Vermonters.
Read more: vtdigger.org/2016/06/16/vsac-cutting-55-employees-as-part-of-refocusing-mission/