Lenders and Guarantors Offer Alternatives to President's Loan-Overhaul Plan

With Congress poised to take up legislation to overhaul the student-loan system as early as next week, lenders and guarantors are furiously circulating alternatives to President Obama’s plan to end bank-based lending.

Some of the proposals would preserve a role for banks and other lenders in issuing student loans; others would carve out a place for nonprofit lenders and guarantors in a direct-loan system.

It is unclear whether lawmakers will incorporate any of