House Takes Next Step On Student Loan Reform Bill
By Corey Boles, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The U.S. House of Representatives Wednesday approved
a key procedural rule on a bill introducing sweeping reforms to the student loan
marketplace.
A final vote on passage of the legislation is not expected until Thursday.
Given the large Democratic majority in the House, the legislation is widely
expected to glide through, but from there it's more uncertain what happens in
the Senate.
The bill replaces private lenders as originators of student loans with the
federal government, effectively ending the private market for student loan
financing.
It will retain a role for private lenders to bid for a limited number of
contracts to service loans after they are made by the federal government.
The anticipated savings that would be generated by the measure would be used
to increase grants for lower income students, increase aid for minority
students, provide more funding for community colleges, with a small portion left
to pay down the deficit.
-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com
(END) Dow Jones Newswires
09-16-091308ET
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