Bank-based Student Loans Ending
September 18, 2009
The U.S. House of Representatives approved a bill yesterday that would end bank-based student loans. If approved by the Senate the bill would only allow student loans to be issued by the government through the Direct Loan program and other federal programs. Private lenders would no longer be able to originate government backed student loans.
Many private bank-based student loans carry unfavorable terms and rates whereas government backed student loans typically have low rates and flexible repayment options.
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