WINOOSKI, Vt.—The Vermont Student Assistance Corp. in Winooski is cutting about 15 percent of its workforce because of changes in the way federal student loans are managed.
Over the next three months, 52 full-time and six part-time workers will leave VSAC as part of a buyout package that will vary depending on the employees' length of service. After the staff reduction, VSAC will have 255 employees, down from almost 400 three years ago.
Cuts have been expected since the reform of federal student loan rules, which eliminated the issuance of new loans through the Federal Family Education Loan Program, VSAC's primary source of income.
VSAC Vice President Scott Giles told the Burlington Free Press the staffers taking the buyout range from senior managers to line employees, with terms of employment from two to 33 years.
VSAC will continue to service its outstanding family loans, but revenue from those loans is expected to drop about 10 percent a year.
About 30 of the employees who are taking the buyout have helped originate loans, a function that is disappearing with the family education loans.
VSAC has traditionally been a full-service student loan agency and a post-high school education resource center, which has promoted college enrollment and vocational training for Vermonters. Much of the organization's counseling and outreach programs were funded by proceeds from family education loans.
Now education loans are offered through the U.S. Department of Education.
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Information from: The Burlington Free Press, http://www.burlingtonfreepress.com
