WASHINGTON — The House on Thursday backed a measure aimed at ensuring that students get college loans amid the turmoil in the credit markets.
Passage of the bill on a 383-27 vote comes as worries mount that the tightening credit markets, stemming from the subprime mortgage crisis, could limit financial aid for students.
“Families deserve every assurance that we are doing what we can to make sure that they will continue to be able to finance their children’s college education, regardless of what happens in the credit markets,” said Rep. George Miller, D-Calif., who chairs the House education committee.
Dozens of lenders, making up an estimated 13 percent of the market, recently stopped making loans under the federal student loan program, in which the government subsidizes and backs low-interest loans.
The departure of those lenders hasn’t resulted in students being shut out of the program. Other lenders have stepped in, or the students have received loans through a smaller program in which the Education Department makes the loans directly to students.
Some students relying on private loans, which are not federally backed and can carry high interest rates, have had trouble getting those nonfederal loans. Bank of America said Thursday it plans to join the ranks of lenders that have stopped issuing private loans, though it plans to continue making government-backed loans.
The House bill seeks to address that problem by raising limits on how much borrowers can receive under the federal program.
