House votes to curb corrupt lending

Published May 10, 2007

WASHINGTON - The House easily approved a bill Wednesday aimed at curbing conflicts of interest and corrupt practices in college lending.

The bill would ban gifts from lenders to schools and impose strict controls on schools that publish approved lender lists to guide students to certain loan companies. Lenders and schools would have to make their business dealings more transparent to borrowers, disclosing terms, conditions and any incentives involved.

The House approved the bill on a vote of 414-3. The matter now goes to the Senate, where similar legislation is pending.

Education Secretary Margaret Spellings is scheduled to testify in Congress on the student loan scandal and other issues today.