Student Loan Bill Backed by Bush Wins Congressional Approval

Congress gave concluding blessing to
legislation designed to guarantee that disturbance in the recognition markets
doesn't do a deficit in pupil loans. President bes after to subscribe it into law.

The measurement would shoot liquidness into the pupil loan
market by allowing the U.S. Department of Education to buy
federally guaranteed pupil loans that loaners haven't been able
to sell to investors.

The House voted 388-21 to sign minor alterations made by the
Senate to a measure that passed the House last month.

House Education and Labor Committee President
said during flooring argument today that pupils haven't yet been
hurt by the tightening recognition market.

''We believe that it is only prudent to set up for that
possibility, that the in progress emphasis in the nation's financial
markets could endanger entree to pupil loans,'' Glenn Miller said.

The statute law is intended to turn to a crisis in the
market that have forced Citigroup Inc.'s , and about 50 other loaners to halt authorship some word forms of
student loans. The companies mention increased adoption costs, cuts
in authorities subsidies for instruction loans and a deficiency of
investor involvement in securities backed by loans.

Without authorities action, demand for federally backed
student loans would surpass supply, industry functionaries said. About 7 million borrowers will necessitate more than than $68 billion in
federal loans this academic year, according to Education
Department estimates.

The planetary recognition crunch have raised lenders' financing
costs, and they are not able to raise the rates they bear down for
federally guaranteed loans because they are locked in by the
government.

To reach the newsman on this story:
in American Capital at
.