US Government Assures Funding of Student Loans

Bloomberg has reported today that the U.S. government has launched a program to support college lenders to ensure that students will get the government-backed financial aid they need for the 2008-2009 academic year, after a seizure in the credit markets threatened the flow of funding.  President George W. Bush signed a law on May 7 aimed at ensuring students can get government-guaranteed loans. The legislation empowered the U.S. Education Department to buy loans that private lenders were having trouble selling to investors because of the credit contraction tied to the subprime-mortgage crisis.

Complete story can be read at Bloomberg.