(Host) The Vermont Student Assistance Corporation may have to cut 200 jobs because of changes that are coming to the federal student loan program.
Nearly 90 percent of VSAC’s operating budget was generated by revenues from the former student loan program, which was eliminated last year. VSAC will continue to earn revenue from servicing loans that were issued under that program. But the money will diminish.
Now, VSAC is negotiating a role in the new federal Direct Loan program. VSAC Vice President Scott Giles says the organization has applied for a contract to service 100,000 accounts in the new program.
(Giles) "The trick is going to be whether we can secure a price for that servicing, and an agreement on a range of services that make it financially worthwhile, and worthwhile from a mission perspective for VSAC."
(Host) Giles says the organization hopes to begin negotiations next month, and reach an agreement by the end of April.
VSAC currently has 300 employees at its offices in Winooski.