Saturday, May 24, 2008

Education Agency’s Plan Shores Up Market for Loans to College Students

Secretary of Education Margaret Spellings on Wednesday announced a plan committing the federal government to buy college loans for the coming school year from student lending companies and to take other measures to ensure that despite troubled credit markets, students will have access to college financing.

The nation’s largest student lender, Sallie Mae, immediately praised the loan purchase plan, and said it would continue or perhaps even increase the breadth of its college lending this year.

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