House passes "biggest change in U.S. higher education finance in 35 years"

[ProSense]

Student loan market overhaul approved by House

WASHINGTON (Reuters) – The biggest change in U.S. higher education finance in 35 years was approved on Thursday by the House of Representatives, handing a defeat to major banks and student loan giant Sallie Mae.

Lawmakers voted 253-171 in favor of legislation that would cut the banks and Sallie Mae out of a large slice of the $92 billion college student loan business, shifting most lending into a program run by the U.S. Education Department.

The bill, supported by the White House, will go next to the Senate for further consideration.

The Senate education committee is drafting a bill similar to the House measure and hopes to take action on it within weeks, said a Senate Democratic aide.

link

[Scurrilous]

1. Good news!

K & R :thumbsup:

[Joanne98]

2. YAY

[SpartanDem]

3. Good news, but lets see how it does in the Senate

aka the place where good bills go to die

[Cha]

4. I read about this awhile ago and

thought, "great!" and now the House the has voted.

[WCGreen]

5. Bush out sourced the loans to what amounted to glorified loan sharks...

[HamdenRice]

6. krnt

[quiet.american]

7. Excellent news. nt

[flpoljunkie]

8. Thank you, Speaker Pelosi!

[mopinko]

9. please please- i have 3 on college now, and a 4th in the spring.

and another in 2 years. please straighten this out.
they were talking about a more sane repayment schedule, also, with some forgiveness for those using their education to serve others. hope those things are still in there.

[damntexdem]

10. Let's see how Baucus screws this one up. Won't it also need to go through his committee?

So now it's off to the Demonic Senate ... I mean Democratic Senate. ;-)

[Thrill]

13. Watch how the Banks get in there and mess this up

Durbin already said they own the place

[girl gone mad]

11. Good news..

Hope it makes it through the Senate.

[Rosco T.]

12. Will this let existing loan shark money be moved to the fed program?

[mwooldri]

14. If you haven't consolidated your private fed student loans...

... you can consolidate them with the Department of Education Direct program...

I needed a consolidation and at the time I needed to do it the Direct Loans program were the only game in town.

Personally I think banks will be glad to be out of the federal student loans program and let the government take care of it all... and stick with the private student loans where they can screw us over rotten.

Mark.