Bush Officials Killed Proposal For Student Loan Reform

Education Department under Bush is cozy with the loan industry, critics say
By Sam Gale Rosen,  Newser Staff
Posted May 1, 2007 11:25 AM CDT
Bush Officials Killed Proposal For Student Loan Reform
Bush goes to college   (KRT Photos)

(Newser) – Bush officials killed a proposal to clamp down on sleazy practices in the student loan industry in 2001, the Washington Post reports. The proposals, drafted under Clinton and circulated to the Bush team, was aimed at curbing the kind of abuses now being investigated, in which loan companies pay universities to help get students' business.

"The Department of Education has been run as a wholly owned subsidiary of the loan industry under this administration," said Barmak Nassirian, an advocate for industry reform. More than a dozen department officials used to work in the loan industry, or found jobs there after leaving the department, the Post reports. (Read more student loans stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.