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actions & protests | economic justice

End Sallie Mae and her evil sister Nellie Mae

Its time to STOP paying those loans back! If we collectively did this and stopped paying taxes this year then the system would collapse. Out of the ashes we could create a new democratically empowered system.
Sisters, Brothers, Syblings of all kinds, My Kin in blood and spirit

I ask of you this. I beg of you this. That an independent Cascadia (be She the Republic of ... or the Bioregional Cooperative Commonwealth of... ) be a social network which believes and upholds four core believes. First being devotion to the eco-systems by stewarding and renewing the Commons. Second, up holding and fighting for Universal Human Rights along with real democratic systems. Third which is part of the second core value is Universal Healthcare for all people (regardless of any imposed human status) as long as they consent. And fourth and to the point of this post, that we create a system of universal education for all at all ages. Most modern post industrial countries today offer their people either free or low cost higher education. I propose we offer free with the obligation that the graduating student return that "free education" with civic duty to the community or bioregion or even the global community at large. I have proposed before in other posts that I believe we need something like the German system that once the 18 year old or 19 year old graduates from the German equivalent of high school that the student have a two year enlistment into an apprenticeship program that would be on the spot training into the field of their choice. I have named this system Mamook Tilicum (Chinook Jargon for Working Tribe) in previous posts. This system would work directly with various labour and teachers unions to shape a new generation of highly skilled Cascadians.

With that in mind we still need to deal with our current economic landscape of debt and preditorial stalking by corporate vampires and their ghastly henchmen (or women) that have destroyed our educated population and impoverished countless in both debt and deep disappointment. We (everyone of you) MUST starve the Beast! Stop paying those student loans back. View it as this all the health care and education that you sacrificed by going into debt or worst was denied because of their games. This is our time to end this and literally destroy them by simply not paying those loans back and convincing others to join in.

Sallie Mae and Nellie Mae in the news:

U.S. education stocks seen lagging amid credit worries
Tue Jan 22, 2008 2:40pm EST
By Chelsea Emery

NEW YORK, Jan 22 (Reuters) - Investors are giving education stocks a failing grade as the spreading credit crunch makes it tougher for students with poor credit to get loans from private lenders.

Education companies are usually seen as safe havens during economic slowdowns, but investors are shunning those shares, fearing that Sallie Mae's (SLM.N: Quote, Profile, Research) decision to yank funding away from subprime student borrowers will hurt revenue and profits at for-profit school groups such as Corinthian Colleges Inc. (COCO.O: Quote, Profile, Research) and Career Education Corp (CECO.O: Quote, Profile, Research).

On Tuesday, Corinthian and Career Education told investors that Sallie Mae would no longer make some loans available for student borrowers. These so-called gap loans provide students with needed cash that is not provided by the government or grants. Without the extra money, some students may not be able to fund their education, and Wall Street is worried some schools could see a decline in enrollment.

"We're going through a nervous time here for the (companies) that have relied on third parties to do this gap funding for their students," said Kent Gasaway, a fund manager who follows education stocks for Kornitzer Capital Management Inc in Shawnee Mission, Kansas. "We'll go through a period where we've got to see if other lenders will come in and step into this role."

And if other lenders don't step up, education companies may take on the risky loans or they may have to turn away students, said Trace Urdan, an analyst with investment firm Signal Hill.


Education stocks are seen as good bets during economic downturns, as newly unemployed workers go back to school to hone their skills or begin a new career. Economists are warning of a possible recession amid a slew of weakening U.S. economic indicators -- which could be seen as a positive for schooling companies.

A study by Signal Hill encompassing more than 25 years of data showed that enrollment in two-year degree programs rose when gross-domestic-product growth declined. For example, during the 1991 recession, real GDP contracted 0.2 percent while enrollments grew 7.9 percent.

But investors are not taking any chances. Corinthian's shares lost more than a third of their value, dropping to a more than six-year low of $6.99 after Sallie Mae said it would cease its funding on March 1. Other education stocks tumbled, including DeVry Inc (DV.N: Quote, Profile, Research), which fell more than 7 percent to $54.59 and Career Education, which lost 14 percent to $17.15.

"You have a perfect storm that's brewing," Harris Miller, president and chief executive of Career College Association said. Subprime loan market jitters have piled on top of cuts in government subsidies for private lenders and some loan scandals.

"There's an uncertainty here," said Gasaway. Though he likes the long-term outlook for education stocks, Gasaway said investors will remain nervous until they know how students will fund their schooling.

Options volume for Career Education exploded after it said Sallie Mae would end its recourse loan program with the company. Volume rose to about 17,000 contracts in afternoon activity, trading six times its normal level, according to market research firm Trade Alert.

In the options market, traders were buying February "puts" allowing them to sell the stock at $15 more than $1 below the current share price. Investors often turn to puts to speculate on further stock price erosion or to protect their stock positions from downside risk.

"This is over concerns that less funding will find its way to their peripheral students from the federal government," said Chris Manns, an analyst at Web information site www.optionmonster.com in Chicago. (With reporting by Doris Frankel in Chicago, editing by Maureen Bavdek)


US SEC Probing Sallie Mae Actions Near Stock Sales
Thu Jan 24, 2008 3:01am EST
By Karey Wutkowski

WASHINGTON (Reuters) - Student lending company SLM Corp (SLM.N: Quote, Profile, Research), or Sallie Mae, said on Wednesday the U.S. Securities and Exchange Commission is investigating the company's disclosures in December 2007, before and after executives and directors traded in its stock.

Sallie Mae said in an SEC filing that the agency made the request on Jan. 17. It said it was cooperating with the regulator to provide the information and documents.

It did not provide more information, such as which company stock sales or which company insiders are the focus of the probe.

Sallie Mae also posted a fourth-quarter loss on Wednesday, citing higher provisions for loan losses as a result of weakening credit markets.

Shares of Sallie Mae fell $2.01, or 10.6 percent, to $17.01 at mid-afternoon on the New York Stock Exchange.

A Sallie Mae spokesman did not immediately return a call seeking comment.

In December, Sallie Mae shares tumbled 47 percent on news of a failed $25 billion buyout and a company announcement that it would need to add capital.

Two insiders reported open market stock sales in December: newly appointed Chief Executive Albert Lord and director Charles Daley.

Lord, the company's executive chairman, was named CEO on Dec. 14, two days after it said a consortium led by private equity firm J.C. Flowers refused to renegotiate a disputed $25 billion agreement to buy Sallie Mae.

The same day he was named CEO, Lord sold about 1.2 million shares of the company's common stock on the open market for prices ranging from $26.64 to $27.99 a share, according to SEC filings.

Sallie Mae said the sales, representing about 10 percent of his equity units, were required under Lord's "borrowing arrangements." Regulatory filings with the SEC reporting the sales did not mention any plan dictating the transaction.

"This stock sale has been painful, and was dictated by the specific terms of my securities account," Lord said in a company statement on Dec. 14. "I uniquely identify with shareholders' disappointment and frustration with this transaction."

The company also said on Dec. 14 that it opened its trading window for directors and executives for the first time since discussions with the J.C. Flowers group began in March 2007.

The only other insider to immediately take advantage of the open trading window was Daley, who on Dec. 14 sold about 80,000 shares on the open market at prices ranging from $26.38 to $27.99 a share, SEC filings show.

Five days after both executives' stock sales, Lord said on a conference call that Sallie Mae might face higher financing costs and that the company would need to add capital, sending Sallie Mae shares plunging nearly 21 percent to close at $22.89.

Lord was testy at times on the call, and said he would take more questions at a meeting in January, recommending that participants arrive early "because I can assure, you will be going through a metal detector."

Lord earned about $5 million more in proceeds by selling his stock on Dec. 14, compared to what he would have made if the transactions had occurred after the call, while Daley earned about $340,000 more, according to an analysis of SEC filings.

(Editing by Richard Chang and Dave Zimmerman)


Career Education says Sallie Mae terminates loan program
Tue Jan 22, 2008 12:35pm EST
Jan 22 (Reuters) - Career Education Corp (CECO.O: Quote, Profile, Research) said in a regulatory filing that SLM Corp, commonly known as Sallie Mae (SLM.N: Quote, Profile, Research), is terminating its recourse loan program with the company. The for-profit education company said it is working with Sallie Mae to arrange continued funding for students that currently utilize recourse loans, as well as an interim solution for a period beyond the next 30 days for new students. (Reporting by Sreerupa Mitra in Bangalore; Editing by Deepak Kannan)


New Sallie Mae CFO gets $1 million this year with possible $3 million bonus

By Matthew Quinn
January 14, 2008

Newly appointed SLM Corp. CFO and vice chairman Jack Remondi will be paid $1 million this year and could earn up to another $3 million in an incentive bonus, according to a filing with the Securities and Exchange Commission.

Mr. Remondi re-joined the company, popularly known as Sallie Mae, last week after an almost 2 year hiatus. He replaces C.E. Andrews, who was named chief executive in May when Thomas Fitzpatrick abruptly stepped down. Mr. Andrews was moved to president last month when Sallie Mae's board of directors named executive chairman Albert Lord CEO.

Sallie Mae will also pay Mr. Remondi at least $1.5 million in severance if he is terminated without cause within his first year.

Mr. Remondi, 45, will receive other perks, including housing in Reston, Va., where the company is based, for up to two years and $100,000 per year for personal use of the corporate aircraft.

A Sallie Mae spokesman did not return a call for comment.

The compensation package includes a stock appreciation right that could earn Mr. Remondi two million shares of Sallie Mae stock. The award vests if the company's stock equals or exceeds $20.76 a share for five days, or 20% above the exercise price of $17.30. If the award does not vest under the price target, it will vest five years from the grant date of Jan. 8, 2008. Mr. Remondi will be granted an additional award of one million shares on Jan. 8, 2009, which will vest if Sallie's share price equals or exceeds the grant price by 40%. Otherwise, the award will vest on Jan. 8, 2014.

Mr. Remondi joined Sallie Mae in 1999 as treasurer when the student lender acquired Nellie Mae, where he was finance chief. He eventually rose to executive vice president of finance before leaving to join Boston-based investment firm PAR Capital Management as a portfolio manager in August 2005.