Student Loan Company To Close Tulsa Office

Friday, September 7th 2007, 2:07 pm
By: News On 6

OMAHA, Neb. (AP) _ Student loan company Nelnet says changes in federal student loan rules will hurt its business _ and it will have to cut jobs in Tulsa and elsewhere in the country.

Federal lawmakers have given preliminary approval to bills that would cut roughly $20 billion in federal subsidies to banks that issue government-backed student loans and restructure some federal loan programs.

Nelnet announced plans Thursday to cut 400 jobs and close loan origination offices in San Antonio, Texas; Honolulu, Hawaii; Mesa, Arizona; Sacramento, California; and Tulsa, Oklahoma. The company will also reduce its Indianapolis operations significantly from 320 people to about 55.

Nelnet says it expects to record non-cash charges between $22 million and $27 million once Congress approves the new student loan regulations because some of the company's assets will be worth less.