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"Some college administrators seem so distracted with fund raising, academic infighting, and community initiatives that they set up their emergency communications departments very poorly. Training is poor to nonexistent, secretaries are pressed into service with tremendous responsibilities for running 'notification systems' 24/7 and on weekends because no one else knows how to do it and the administration won’t pay for additional staff. Procedures are seat-of-the-pants and dependent on HIPPO (highest paid person’s opinion), except when something like Virginia Tech happens and there is some sort of scramble to do something different." --Donna
Most Colleges Avoid Risk Management, Report Says
Jill Biden Shines a Global Spotlight on American Community Colleges
Speaking at a Unesco conference in Paris, the vice president’s wife stressed the importance of two-year institutions to the nation’s educational goals.
Connecticut Public Colleges Lose 200 Professors to Early Retirement
Administrators are scrambling to plug holes in their course schedules for fall, with most expecting to do so by hiring more adjuncts or increasing class sizes.
U. of Georgia Paid 2 Fraternities $2.4-Million to Relocate, Contracts Show
The two were among five with houses on property where the university plans to build new academic facilities.
New Allegations in Admissions Controversy at U. of Illinois Suggest Ex-Provost Played a Role
Linda P.B. Katehi, the incoming chancellor of the University of California at Davis, has insisted she knew nothing of the admission of politically connected applicants at Illinois.
Sonoma State U. Foundation May Lose $350,000 on Loan to Former Board Member
The foundation will be forced to issue fewer scholarships in the 2010-11 academic year because of a diminished endowment, a university official said.
College Suspends Student for Working in Gay Pornography | 58
President Obama's Visit to Notre Dame Carries Barely a Hint of Controversy That Preceded It | 58
Drug Sting Nabs 21 Students at U. of Illinois | 57
Faculty Members and Union Protest Staff Layoffs at Temple U. as 'Cruel' | 57
North Dakota Board's Vote Puts 'Fighting Sioux' Mascot on Thinner Ice | 57
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October 8, 2007
Sallie Mae Sues Buyer Group, Seeking Full Price or Damages
Sallie Mae has upped the ante in its dispute with the buyers’ group that has called off its $25-billion merger agreement with the student-loan giant. The company announced today that it had filed a lawsuit in a state court in Delaware seeking, among other things, a declaration that the buyers have repudiated the contract and that Sallie Mae may now terminate the agreement and collect damages of $900-million.
The takeover price, set in April, amounts to $60 a share. But the buyers’ group, which is led by the private-equity firm J.C. Flowers & Company and also includes JPMorgan Chase and Bank of America, has argued that the price should be lower because Congress recently cut federal subsidies to student-loan providers more deeply than had been expected. That action, the Flowers group says, constitutes a “material adverse effect” that gives it the right to break the contract.
But Sallie Mae asserts in its lawsuit that no material adverse effect has occurred. Its chairman, Albert L. Lord, said in a written statement that “Sallie Mae has honored its obligations under the merger agreement. We ask only that the buyer group do the same.” —Charles Huckabee
Posted on Monday October 8, 2007 | Permalink |Comments
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What stupidity. A grouip of excessively wealthy people buy a student loan company because they get a federal subsidy. See what Bush has brought us too? Let’s close Sallie Mae down and let the “good times roll.”
I just read that 113 former members of the national capitol lobbying empire now have jobs regulating their former and future bosses whom they will go back to work for shortly.
Is this 1984 or a new neo nazism or fasism taking control of America?
Soon like 1929 we will all pay the piper while the wealthy (now super wealthy) retire to Crawford and draw more checks from Arabia.
— russ james Oct 9, 07:38 AM #
The private equity group had planned to enter the highly profitable (as well as non volatile with profits practically guaranteed) student loan industry and when the industry became less profitable, the private equity group, naturally, found themselves less interested in purchasing Sallie Mae. Makes sense.
Thankfully the US government is starting to regulate the industy it created decades ago.
— jason Oct 9, 10:41 AM #
The legislation concerning cuts to the lender subsidies has been on the horizon for a long time. The private equity group was certainly aware of this when the deal was made in April; they are just trying to leverage for a lower price. The student loan industry is still very profitable and will continue to be so as the cost of higher education continues to rise.
— CP Oct 9, 12:27 PM #