Flunking Banks Out of College
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President Obama Pushes to Edge Banks Out of Cheap Student Loans
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By Jennifer Liberto, senior writer
WASHINGTON (CNNMoney.com) -- President Obama has been waging a war with banks over who gets to dole out cheap student loans backed by the federal government.
For months, key lawmakers planned to move a proposal to force all government-backed student loans to come solely from the federal government as part of the health care legislation. Democrats want to cut out bank middlemen who now collect a subsidy to make federal student loans, such as Stafford loans, which offer the lowest interest rates because the federal government assumes the default risk... read more.