9/16/2009

in

The Wall Street Journal's official Web site is reporting that the House of Representatives approves legislation on student loans.

TheCelebrityCafe.com Staff

Earlier today, the U.S. House of Representatives approved of legislation that officially establishes the federal government as the sole provider of student loans, effectively eliminating private-lender involvement in the process, according to the Wall Street Journal Online. The specific statistics of the House vote were 253 voters in favor of the new legislation and 171 opposed to the new legislation.  
  
Democratic Representative from California, George Miller, provided a statement in response to the approval of the college loan legislation, saying, "Today the House made a clear choice to stop funneling vital taxpayer dollars through board rooms and start sending them directly to dorm rooms."  
  
By eliminating fees paid to private lenders entirely, the Congressional Budget Office is speculating and estimating that taxpayers will save $97 billion over the next ten years. The approval of today's legislation puts an end to a two-year state of chaos within the student loan industry.  
  
According to the Wall Street Journal Online, the savings that are going to be generated as a result of this decision will be used towards boosting funding for minority school groups, providing funds for school construction projects, increasing grants for low-income students and using the rest of the money towards reducing the deficit.