House Passes Sweeping Student Loan Overhaul -
The House of Representatives passed legislation today (Thurs 9/17) which would effectively make the US Government the sole provider of loans for college students. This effectively wipes out 3rd party providers of student loans. This would have major ramifications for players in the private sector (including some that run sites of our competitors, such as collegedata.com, or who fund directly or indirectly certain other college websites).
According to the Wall Street Journal:
“Under the legislation, all lenders would be cut out of the market for originating loans. There would still be a role for private banks and lenders to bid for a limited number of contracts to service the loans after they are made by the government.”
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