Student Loan Bill Passes U.S. House But Many Worry It Will Cost Jobs

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By KSFY News

Story Created: Sep 18, 2009 at 5:19 PM CST

Story Updated: Sep 18, 2009 at 5:19 PM CST

H.R. 3221, the Student Aid and Fiscal Responsibility Act, passed along a party line vote of 253 to 171 in the U.S. House Thursday Night. The bill proposes big changes to student loans by taking private banks out of the equation.

Only the government would administer student loans, meaning the Feds would no longer have to pay subsidies to banks for offering student loans in the first place.

The congressional budget office says making this move would save american taxpayers 87 billion dollars over the next ten years.

The bill has passed the democratic-controlled House and now heads to the democratic-controlled Senate. President Obama supports the measure but many republicans are worried. They say by taking banks out of the equation, it could lead to job losses nationwide possibly as many as 30,000 in the banking sector alone.

Already, a leading financial advocacy group is speaking out again the bill. The Consumer Bankers Association doesn't like it.

Click the video link to watch our live phone interview with a representative with the Consumer Bankers Association.

© 2009 KSFY Action News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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