September 30, 2009 | Admin
With a 253 to 171 vote last week, the Democratic-led House of Representatives easily passed landmark legislation that would bring an end to the Federal Family Education Loan Program (FFELP), the program initiated by the Higher Education Act of 1965 to offer college students federally guaranteed student loans via private lenders.
Currently, the government pays these private FFELP lenders a subsidy for the federal student loans they originate. A second federal student loan program — the Federal Direct Student Loan Program, begun in 1992 — issues federal student loans directly to borrower