House approves measure aimed at keeping college loan money
CAPITOL HILL (AP) - With all of the turmoil in the credit
markets, Congress is taking steps to make sure students can still
get college loans.
The House today backed a measure aimed at keeping those loans
available, amid worries that the tightening credit markets could
limit financial aid for students.
Recently, dozens of lenders stopped making loans under the
federal student loan program, in which the government subsidizes
and backs low-interest loans. Other lenders have stepped in, and
some students have received the loans through a smaller program in
which the money comes directly from the Education Department.
But some students relying on private loans have had trouble
The bill passed today would raise limits on how much money
borrowers can get under the federal program. And it tries to
encourage parents to take out federal loans for their children's
eduction. It lets them defer repayment until after their children
(Copyright 2008 by The Associated Press. All Rights Reserved.)