Thursday, September 17, 2009

“House bill would kill subsidized student loans - Houston Chronicle” plus 4 more

“House bill would kill subsidized student loans - Houston Chronicle” plus 4 more

House bill would kill subsidized student loans - Houston Chronicle

Posted: 17 Sep 2009 08:46 AM PDT

WASHINGTON — The House is poised to vote to push private lenders out of the federal college loan business and massively expand the government's own lending program.

Following a day of debate, House lawmakers were expected to approve on Thursday a student aid bill that has widespread support, including from the White House. The measure will then go to the Senate, where its fate is somewhat less certain.

Putting the government in charge of all federal loans would save taxpayers an estimated $87 billion, according to the Congressional Budget Office. The CBO says the figure could be much lower, $47 billion, when administrative costs and market conditions are considered.

The money would boost Pell Grants for needy students, increasing the maximum grant by $1,400 to $6,900 over the next decade. It also would pay for a new college completion fund, community college reforms and more college aid for veterans.

"No student in this great country of ours should have to mortgage their future to pursue their dreams," said the bill's sponsor, California Democratic Rep. George Miller, chairman of the House Education and Labor Committee.

Yet the money also would be spent on things that don't help pay for college, such as construction at K-12 schools and new preschool programs.

And while the measure would increase Pell Grants, it would do nothing to curb college costs, which rise much faster than Pell Grants do.

As consumers, college students probably wouldn't notice much difference in their loans, which they would get through their schools. Broadly speaking, the bill doesn't do much to make loans cheaper or help pay them off.

It does keep interest rates for need-based federal loans from jumping from 3.4 percent currently to 6.8 percent as scheduled in 2012. Rates for most other loans would remain at 6.8 percent.

Still, the bill's changes to federal college aid programs would be the most sweeping since their creation in the 1960s and would fulfill a campaign promise by President Barack Obama.

The measure would end the subsidized loan program under which private lenders made $56 billion in government-backed loans to more than 6 million students last year, compared with $14 billion in direct loans from the government.

The bill would also shorten the labyrinthine college aid form, which Obama proposed to eliminate altogether when he ran for president.

Republican critics argue it is wrong to put the government in near-total control of student lending.

"Ask yourselves whether another government takeover is what we need right now," said Minnesota Rep. John Kline, senior Republican on the Education Committee.

Many also worry about job losses in their districts. Private lenders employ more than 30,000 people whose jobs depend on the subsidized loan program, and the industry says many would be laid off.

Employees of Sallie Mae, the biggest student lender, have been trying to involve local leaders in the issue and recently held a series of town hall meetings and petition drives in Pennsylvania, Florida, Delaware, New York and Indiana.

The Reston, Va.-based lender has about 8,500 employees in the program and probably would lay off about 30 percent of those workers. It still will have contracts to service federal loans.

Democratic Rep. David Wu of Oregon said lenders still could make all the loans they want. "What will not happen anymore is making those student loans with taxpayer subsidies," he said.

Under the measure, Pell Grants would rise slightly more than inflation over the next decade, increasing on average by about 2.6 percent yearly, according to the bill's sponsors.

However, the grants would still depend on annual spending bills and could rise less than promised, as has happened in the past.

Obama originally proposed to take Pell Grants out of lawmakers' hands entirely, making the program an entitlement like Social Security and Medicare, which would have cost an estimated $117 billion — more than lawmakers have to spend.

Hanesbrands To Sell Yarn Manufacturing Operations To Parkdale - Update - RTT News

Posted: 17 Sep 2009 08:10 AM PDT

(RTTNews) -  Thursday, clothing company Hanesbrands Inc. (HBI: News ) said it has entered into an agreement to sell most of its yarn manufacturing operations to North Carolina-based yarn manufacturer Parkdale as the company decides to stop making its own yarn, citing self-production doesn't provide a strategic advantage.

The sale is expected to close in the fourth quarter of 2009 and would result in Parkdale operating three of the four Hanesbrands yarn production plants, while Hanesbrands decides to close the fourth facility.

Winston-Salem, North Carolina-based Hanesbrands said Parkdale would supply a substantial amount of its Western Hemisphere yarn needs. By outsourcing yarn production, Hanesbrands would create a competitive long-term supply of Western Hemisphere yarn at no material change in cost and expects to generate $100 million of balance sheet benefits within six months after the sale as a result of working capital improvement, reduced raw material requirements, reduced inventory, and sale proceeds.

Chairman and chief executive officer Richard Noll said, "Producing our own yarn, when more than adequate large-scale supplies exist, serves no strategic purpose. Outsourcing yarn is a logical evolutionary step to drive value and improve the use of our assets."

Hanesbrands has restructured its supply chain over the past three years to create more efficient production clusters that utilize fewer, larger facilities and to balance its production capability between the Western Hemisphere and Asia. With its global flows coming on line, the company is now focused on optimizing its supply chain to further enhance efficiency, improve working capital and asset turns, and reduce costs.

Under the agreement, Parkdale would take over operations of Hanesbrands yarn plants in Rabun Gap, Mountain City, and Galax, which have a combined 780 employees. Parkdale would supply Hanesbrands from those facilities and other existing Parkdale U.S. production plants.

Hanesbrands expects to cease new production immediately at its remaining yarn plant in Sanford, North Carolina, which has about 150 employees. The company would also close its cotton warehouse in Advance, and yarn warehouse in Clemmons by the end of the year, that have a combined 25 employees.

Further, Hanesbrands said employees affected by the facility closings would receive severance and transition assistance in accordance with its severance policy.

HBI is currently trading at $22.21 per share, up 5.36%, on the NYSE.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com

Deputies raid Peoria business - AZCentral.com

Posted: 17 Sep 2009 09:07 AM PDT

Maricopa County Sheriff's Office investigators were searching a Peoria grading and trash-removal business Thursday morning.

Sheriff's investigators suspect Berardi Enterprises, located at 8439 N. 83rd Ave., hired illegal immigrants, according to a release from the sheriff's office.

Several white sheriff's vehicles could be seen pulling into the business about 7:30 a.m. According to the company's Web site, it does grading, hauling and trash removal.

The sheriff's office was expected to comment Thursday afternoon.

Maryland Business for Responsive Government president to step down - Baltimore Business Journal

Posted: 17 Sep 2009 08:10 AM PDT

Robert O.C. "Rocky" Worcester is retiring after 26 years as president of Maryland Business for Responsive Government.

Worcester has been with the business advocacy group, known as MBRG, since its 1983 founding. It's gained a following since that time for its push for pro-business candidates and legislation, scoring lawmakers on their votes and tracking the twists and turns of bills from committeee hearings to floor debates.

Henry A. Rosenberg, one of the founders of MBRG and former chairman of Crown Central Petroleum Corp., praised Worcester's dedication to Maryland business.

"Over the last 26 years Rocky has displayed the will, resolve, and skill to go fifteen rounds with the best of them," Rosenberg said in a statement.

Worcester said in a statement he considers his most significant achievement with the group was leading a public awareness campaign that helped prevent government-run health care in Maryland.

The MBRG's board of directors, led by Ellen R. Sauerbrey, a former Republican candidate for governor, has launched a search for a new executive director.

MBRG is a group of state business leaders that advocate to improve the state's business climate. The organization is supported by corporations, trade associations, chambers of commerces and individuals.

Head of Intel's largest business unit joins EMC - Charleston Daily Mail

Posted: 17 Sep 2009 08:39 AM PDT

SANTA CLARA, Calif. (AP) - Intel Corp. announced a reorganization of its management structure Monday as the head of its largest business unit leaves the company to become a top manager at data storage company EMC Corp.

The companies said Pat Gelsinger, 48, is leaving the world's largest chip maker to manage information infrastructure products at Hopkinton, Mass.-based EMC. He had been general manager of Intel's Digital Enterprise Group.

Intel, meanwhile, said it is consolidating its separate divisions into one unit called the Intel Architecture Group.

It will be headed by executive vice presidents Sean Maloney and Dadi Perlmutter, leaving CEO Paul Otellini to devote more time to corporate strategy, the company said.

Maloney will head business operations, while Perlmutter will handle product development.

In addition, Intel said its global manufacturing operations will now report to Andy Bryant, the company's chief administrative officer.
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