April 24, 2008

Bush Administration Concludes It Needs Congressional Approval to Aid Student-Loan Companies

By Paul Basken

Washington

The Bush administration called off internal deliberations over a bailout plan for student-loan companies after concluding it did not have the authority to act on its own, instead endorsing a Congressional proposal that would allow the education secretary to purchase loans from private lenders.

Education Secretary Margaret Spellings, after weeks of discussions within the administration, joined her colleagues at the White House and Treasury Department in telling Congress that