WASHINGTON (Reuters) - President George W. Bush signed into law on Wednesday a program to stabilize the $85-billion student loan industry, addressing lenders' warnings of a possible loan shortage in coming months.
The program will temporarily allow the U.S. Education Department to pump government money into the sluggish secondary market for securities backed by student loans, where many lenders obtain capital needed for making new loans.
It will also allow the department to provide funds to state guaranty agencies for making loans to students and colleges in case they are unable to get loans from other sources.
Major student loan providers affected by the law include Sallie Mae, JPMorgan Chase, Bank of America, Citigroup and many others.YahooGot to protect those student loan kickback deals to stimulate the economy.
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