April 27, 2007

Colleges Begin to Feel Political Fallout From Student-Loan Scandal

By PAUL BASKEN and JOSH KELLER

Congressman calls for moratorium on preferred-lender lists; companies barred from database

After two weeks of steady revelations, the scandal in the student-lending industry has made a predictable move from the realm of New York prosecutors to the arena of Washington policymakers. With that, some colleges are preparing to fight back.

In the most wide-reaching response to date, Education Secretary Margaret Spellings ordered an end to all access by outside companies to the

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