Bush Administration Rejects FFB Solution, Puts Responsibility For Ensuring No Loan Disruptions Back On Congress

Abstract: It only took a week for the Bush Administration to turn down an idea proposed by Sen. Christopher Dodd (D-CT) to use the Federal Financing Bank (FFB) to inject liquidity into the student loan market. In a letter to Congressional leaders, Bush Administration officials said that after exploring the idea proposed by Dodd, they do not believe the FFB has the authority to purchase FFELP loans.

The original article was published on 4/24/08 in NASFAA’s Today’s News.