Sallie Mae informed the 500 employees at its Killeen call center this week that it would begin shutting down in 60 days as a result of President Barack Obama’s federal takeover of the student loan industry.

The news that these Central Texans will soon be unemployed shows how out of touch the current administration is with America, says Congressman John Carter (TX-31).

"I have been saying for months now that this takeover of the student loan industry would devastate local economies, and would cost people their jobs," Carter said. "This is exactly the sort of thing we don’t need at a time when unemployment is near 10 percent."

The student loan reform, which was attached to the Democrats’ health care takeover as a way to improve the budget score, prohibits private companies from making federal student loans.

"The administration claims to be focused on creating jobs, but this is more evidence that the policies they force down our throats don’t consider jobs and local economies in the slightest," Carter said.

Carter has been opposed to the student loan takeover from the start, proposing amendments and solutions that would keep people employed. In 2009, he:

• Offered an amendment to the Labor, HHS and Education Appropriations Bill that would have prohibited federal funds from being used to eliminate the FFELP (Federal Family Education Loan Program). Committee Democrats defeated the amendment.
• Cosigned a letter to the chairman of the House Education and Labor Committee extolling the importance of our nation’s guaranty agencies and private lenders’ role in student lending.
• Offered an amendment for H.R. 3221 – the Student Aid and Fiscal Responsibility Act of 2009 – that would have prohibited federal funding from being used to eliminate the FFELP. The amendment was rejected by Democrats on the House Rules Committee.

Nationwide, Sallie Mae said it will eliminate 2,500 jobs because of the student loan reform, which goes into effect July 1.

For those affected by job losses, Carter has set up a page on his website that offers local commuynity resources. Sallie Mae said workers could apply for other positions in the company.