Congress takes up student loans

Steve Henn Apr 17, 2008

TEXT OF STORY

Lisa Napoli: Later today, the House is expected to pass legislation aimed at stabilizing and expanding the federally guaranteed student loan market. Marketplace’s Steve Henn reports.


Steve Henn: Many education experts say this is one credit market that hasn’t felt a crunch. Ed Elmendorf represents more than 400 schools with the American Association of State Colleges and Universities.

Ed Elmendorf: None of the schools have indicated to us any problem whatsoever.

He says, so far, federally guaranteed loans are going out to any student who needs one. Still, many in Congress are worried. And later today the House is expected to pass a bill that would allow students and their parents to borrow more from federally guaranteed student loan programs.

Congressman George Miller speaking in Congress: The bill will reduces borrowers reliance on costlier private loans…

Congressman George Miller hopes it will also prevent student loan crisis, if the private market for these loans dries up. But Elmendorf worries the bill will increase student debt and could give universities a green light to raise tuition.

In Washington, I’m Steve Henn for Marketplace.

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