House OKs student loan overhaul bill
The House overwhelmingly passed a bill designed to address conflicts of interest in the $85-billion student loan market amid a widening scandal.
Adopted by a 414-3 vote, the bill would require colleges and lenders to abide by new codes of conduct, ban gifts from lenders to college aid officers, require disclosure of college-lender relationships and seek to protect students from deceptive marketing practices.
Investigations by Congress and New York Atty. Gen. Andrew Cuomo have accused lending institutions of providing pay and perks to college financial aid officers in return for being put on “preferred lender” lists, which are shown to students looking to borrow money for their education.
The measure would more tightly regulate but not ban preferred lender lists while ensuring that students also would have access to lenders not on the lists.
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