Congress has approved through the 2010 academic year a program that will allow college students who rely on loans to continue their educations regardless of current difficulties in the private credit market.
The Senate passed the legislation on a voice vote Sept. 17. The bill authorizes the U.S. secretary of education to buy loans from lenders in the federal guaranteed-loan program when those lenders are unable to meet demand. It ensures that lenders will have reliable access to capital to make new loans.
The House passed the bill Sept. 16, and it now goes to President Bush for his signature. The secretary’s current lending authority expires in July 2009.
“We can’t allow trouble in the credit markets to further price students out of a college degree,” Rep. George Miller, D-Calif., the chairman of the House Education and Labor Committee, said Sept. 16. Read full story.
(The Associated Press)