House passes bill for crackdown on student loans

House passes bill for crackdown on student loans - May. 9, 2007

The bill tackles conflicts of interest in the $85 billion student loan market amid widening scandals.

WASHINGTON (Reuters) -- The U.S. House of Representatives overwhelmingly passed a bill Wednesday cracking down on 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 protect students from aggressive marketing practices.