March 6, 2009

Student-Loan Companies to President: 'We're Not Dead Yet!'

By Kelly Field

Washington

When President Obama released a budget last month calling for an end to the guaranteed-loan program, a consultant to the Education Department described the student-loan industry as “dying” and “on life support.”

“In Monty Python terms, it is nailed to its perch,” Robert M. Shireman said, alluding to the fact that the industry, like much of the financial sector, is being propped up by the federal government.

But student-loan companies, which have been

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