Student Loan Providers Call On Congress To Reconsider Proposed Loan Auctions

Abstract:

In a letter to House and Senate education leaders yesterday, four student loan provider associations jointly called on Congress to delay implementation of a student loan auction system. The proposed auction system would implement a pilot program requiring lenders to bid for the right to originate student loans in each state and then limit borrowers’ choice of lender to the winning bidders. The Consumer Bankers Association, Education Finance Council, National Council of Higher Education Loan Programs, and the Student Loan Servicing Alliance requested that Congress conduct “a comprehensive review of how auctions might work” instead of implementing the proposed pilot program.

The full article was published in NASFAA’s Today’s News on 8/28/07.