Sallie Mae to Cut 1,700 Jobs in Consolidation

Sallie Mae, which provides funds for federally guaranteed student loans, said it would cut 1,700 jobs, or about 25% of its work force, in a move to consolidate operations after its acquisition of USA Group’s student loan operations last month. Sallie Mae’s parent company, SLM Holding Corp., renamed itself USA Education Inc. in connection with the $770-million acquisition, which added about $6 billion to its managed student loan portfolio. The Reston, Va.-based company said it will take a charge of $50 million in the third quarter as a result of the cuts. Shares of USA Education rose 81 cents to close at $39.19 on the New York Stock Exchange.