UPDATE 1-US House approves student loan marketing crackdown
(Adds vote tally, bill details, Miller comment, byline)
WASHINGTON, Feb 7 (Reuters) - The U.S. House of Representatives approved a bill on Thursday to crack down on abusive marketing practices in the $85 billion student loan industry and encourage colleges to moderate tuition increases.
Despite White House opposition, the House passed the bill by a 354-58 vote, bringing closer to completion a range of reforms responding to scandals involving kickback schemes and conflicts of interest among lenders and college officials.
In addition to banning cozy ties between lenders and schools, the House bill would require shortening and simplifying the standard student financial aid application form, both steps already endorsed by the Senate.
The House bill would additionally expand funding for graduate student programs at colleges that traditionally serve minority students and create new scholarships for active-duty military personnel and their family members.
California Democratic Rep. George Miller, chairman of the House Education and Labor Committee, said, "Now we are redoubling our commitment to college students and parents by reining in skyrocketing tuition prices and making our whole system of higher education far more consumer-friendly."
Under the bill, lenders and colleges would have 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. (Editing by Jeffrey Benkoe and Braden Reddall)
