Lawmaker to back Obama student loan shake-up
WASHINGTON (Reuters) - The head of a key U.S. congressional panel will introduce legislation on Wednesday calling for ending a college student loan program that for years helped lenders such as Sallie Mae thrive.
The troubled Federal Family Education Loan Program, or FFELP, would be discontinued in July 2010 under a bill to be offered by Democratic Representative George Miller, chairman of the education committee of the House of Representatives.
Like a proposal made in February by President Barack Obama, Miller will call for conversion next year of all new federal student lending to the U.S. Education Department's "stable, effective and cost-efficient Direct Loan program."
That change would save U.S. taxpayers $87 billion over 10 years, said a statement from Miller's office.
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