Thursday, September 17, 2009

Bill Would End U.S. Subsidy For Lenders of College Aid

The federal government would end its four-decade practice of subsidizing private lenders that make college loans under a bill the House took up Wednesday that would steer tens of billions of dollars in savings to student aid over the next decade.

Republicans and the lending industry say the bill would engineer a risky shift in higher-education finance that could prove costly to taxpayers and diminish quality of service to borrowers. But Democrats and the Obama administration say the government could save an estimated $80 billion by ending a subsidy system that they contend benefits banks rather than students... click link to continue reading:

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