UPDATE 1-U.S. House panel approves student loans crackdown

(Adds details of bill, background in paragraphs 7-13; adds byline)

By Kevin Drawbaugh

WASHINGTON, Nov 15 (Reuters) - A U.S. congressional committee on Thursday approved a bill to crack down on deceptive marketing practices in the $85 billion student loan industry, while urging colleges to restrain tuition inflation.

The House of Representatives Education Committee adopted the measure by a vote of 45-0 after scandals involving kickback schemes and conflicts of interest among lenders and some college officials embarrassed the industry and academia.

Under the bill, lenders and colleges would be required to adopt codes of conduct on loans; students and parents would get more information about borrowing; and, for the first time, colleges would be explicitly pushed to rein in tuition hikes.

"This bill includes meaningful steps to hold colleges and universities accountable for excessive tuition increases," said California Rep. Howard McKeon, the panel's top Republican.

Committee Chairman George Miller, a California Democrat, sponsored the bill and said it "would help colleges rein in ... price increases by providing them with incentives."

Swift House floor passage is expected by aides from both parties. The Senate has already passed similar legislation.

But the House and Senate versions differ, and with the holidays near, reconciling them into a single package to send to President George W. Bush may take until early next year.