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House backs intervention in student loan market
WASHINGTON |
WASHINGTON (Reuters) - The House of Representatives on Thursday approved a bill calling for federal intervention to stabilize the $85 billion student loan market amid turmoil brought on by the subprime mortgage crisis.
The legislation calls on federal financial institutions, including the Treasury Department's Federal Financing Bank, to pump liquidity into the student loan market.
It would also let the Department of Education buy federally guaranteed student loans from lenders unable to sell them on the largely inactive secondary market, and funnel loan capital to colleges through state guaranty agencies.
A similar bill is pending in the Senate. The White House on Wednesday voiced support for much of the legislation.
(Reporting by Kevin Drawbaugh; editing by John Wallace)
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