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Prior days' news: By date | Search This week's print issue Back issues: By date | Search May 7, 2008Bush Signs Student-Loan Bailout Bill Into LawWashington — President Bush signed into law this morning legislation that aims to avert a shortfall in student loans. The law, which the House and Senate passed swiftly and which Mr. Bush endorsed in a radio address, seeks to stem the departure of loan companies from the federally guaranteed student-loan program and to reassure families that student loans will be available in the fall. More than 50 lenders have left the federal program in recent weeks, amid a credit crunch that has spread from the housing market to the student-loan industry. To encourage lenders to remain in the federal program, the law allows the secretary of education to buy loans that lenders have struggled to sell to investors. The law also clarifies that the Education Department has the authority to advance federal funds to guarantee agencies, so those agencies could make loans, if necessary, under a “lender of last resort” system. The law will ease the process of applying for a student loan under such a system, allowing the secretary to designate emergency lenders of last resort on a collegewide basis, rather than student by student. —Kelly Field Posted on Wednesday May 7, 2008 | Permalink |Comments
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BIG WHOOP! When is the govt. begin a bali out package for STUDENTS that cannot pay off thier student loans due to the lousy economy. Working part time in a museum barily covers my basic needs. How can I ever hope to pay off my student loans?
— Dan May 8, 11:17 AM #
Learn to spell..maybe then you can find a better paying position.
— B May 8, 01:49 PM #
Student loans are best viewed (I believe) as an investment in a student’s future career-long earning potential. One of the careers we looked at demonstrated that a student, earning at an average annual income of $40K over the length of their work life earn $2.00 for every $.01 of tuition paid.
That’s a deal!
cg
— CSG May 8, 02:40 PM #
If you have only a liberal arts B.A., good luck finding a job which pays $40k!
— DM May 8, 03:02 PM #
Hey, Big Whoop. I do not recall a guarantee of employment when I accepted my loan. Your “bail out” plea translates to I have to pay my obligation and yours, as well. That’s not going to happen. Patience.
— davidk May 9, 12:51 PM #