Subsidy cuts eyed for college lenders
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US Senator Edward Kennedy has proposed cutting subsidies to college loan providers by $18.3 billion and using the savings to increase aid for low-income students, in legislation similar to a measure approved by a House panel.
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The nation&#39;s colleges and universities are losing ground on affordability and access, according to a national report released yesterday by an independent nonprofit organization.
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Government subsidies can be a real drag.
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WASHINGTON -- Shares of Sallie Mae plunged Wednesday after the chief executive said the student lender would consider cutting its dividend next year to shore up its finances amid rising loan defaults and dwindling government subsidies.
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Commercial education companies are offering student loans as they scramble to ensure a steady stream of college-level students amid the credit squeeze.
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The investor group led by J.C. Flowers  & Co. that agreed to buy out student loan firm Sallie Mae for  $25 billion said proposals to cut government subsidies to  student lenders could threaten the deal, Sallie Mae said on  Wednesday.
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Sallie Mae said yesterday that the Education Department is investigating its billing practices and that its business of issuing loans subsidized by the federal government will be significantly less profitable because of changes by Congress.
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Students from research-led universities want the government to consider establishing a national bursary scheme to boost widening participation to higher education.
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Rural colleges need a fairer funding deal to prevent the closure of courses, ministers are told.
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A House panel cut subsidies for wealthy farmers Thursday. Will Congress slash even deeper?
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The U.S. House of Representatives voted 273-149 on Wednesday to slash federal subsidies paid to college student-loan companies, such as Sallie Mae and Citigroup Inc, by $19 billion and boost grants to students, ignoring a White House veto threat.
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Business & money: Credit crunch and housing woes blamed for gloom as businesses begin lobbying for interest rate cut
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Internal student loan industry documents unveiled Tuesday provide further evidence of conflicts of interest between banks and colleges or school officials.
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A Congressional report suggests that there has been more questionable conduct in the ties between colleges and student loan companies than previously reported, this time involving charitable giving to build business.
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Legislation to lower interest rates on student loans and increase aid to poor people who want to go to college won House approval on Wednesday.
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When it comes to paying for college, cash-strapped families have had a few good tidings of late. A string of elite, private colleges have announced major boosts in financial aid.
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Republican presidential candidate Mitt Romney said Wednesday that he would like to link college financial aid to the jobs students pursue after graduation.