Legislative Background
Recent Action on Student Financial Aid
Democrats have long sought to end the program that subsidizes private lenders who provide federally guaranteed student loans, arguing that the government offered a more reliable source of capital but at the same rate and with the same terms. The Administration of President Bill Clinton pushed for such legislation 16 years ago, but was blocked by the private lending lobby. When Barack Obama assumed the presidency, ending subsidized lending became one of the key components of his education reform agenda. House Action. On September 17, the House of Representatives passed H.R. 3221, the Student Aid and Fiscal Responsibility Act, introduced…
