What the legislation does: It would end the Federal Family Education Loan program, under which the federal government subsidizes banks and other lenders to provide student loans.History: The program started in the 1960s. In the early 1990s, the government started issuing its own loans directly to students. In 2007, the industry came under scrutiny for overcharging the government and offering inducements to colleges.
SOURCE: | Alec Macgillis and Tobey/The Washington Post - March 19, 2010
Student loan plan advances with health bill Article | President Obama moved closer to achieving one of his top policy goals Thursday as congressional Democrats joined forces behind legislation that would cut funding to private student lenders and redirect billions of dollars in expected savings into grants to needy students.