News : In Cost-cutting, FedLoan Student Loan Call Center in Chester Closing Next Year
Chester, PA, USA, Dec 4, 2019 -- As part of a larger cost-cutting effort, the student loan servicer FedLoan’s call center in Chester will close by the end of next year, according to Keith New, spokesperson for the Pennsylvania Higher Education Assistance Agency, which runs the center.
"We currently have 77 employees working at Seaport and we have been working to minimize any impact this may have," New said in an emailed statement. "This includes providing as much notice as possible while ensuring that employees have the option of transferring to another facility that manages FedLoan servicing calls, including our headquarters in Harrisburg," he said. As of Dec. 2, PHEAA had a total of 2,714 employees.
FedLoan is part of the state-run Pennsylvania Higher Education Assistance Agency (PHEAA), which services about federal student loan borrowers. The agency faces investigations from state attorneys general and lawsuits from disgruntled customers.
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The agency, which has outsourced jobs in recent years to Florida and India, said there are no plans to close additional facilities in Pennsylvania.
According to current job listings on PHEAA.org’s website, call centers operate mainly out of Harrisburg, Mechanicsburg, Pittsburgh, and State College.
In August, PennLive.com reported that PHEAA also plans to vacate the space it uses for a call center in the Westport Business Center in Lower Allen Township, Cumberland County. That call center, which employs nearly 500, is expected to be closed by the end of 2019. The workers in Lower Allen are being moved to the agency’s headquarters in Harrisburg.
"We heard they were closing some facilities," said Guy Ciarrocchi, president and CEO of the Chester County Chamber of Commerce. "So far it doesn’t affect any of our member companies or their employees."
Posted by Veronica Silva Cusi, news correspondent
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