"A Congressional panel voted today to expand federal oversight over private student loans, but refused to clarify that institutional 'gap loans' would be covered," Chronicle of Higher Education reports. "By a vote of 33 to 35, the U.S. House of Representatives Financial Services Committee rejected an amendment to legislation (HR 3126) to create a new Consumer Financial Protection Agency that would have put loans made by for-profit institutions under the agency's purview. Consumer advocates have warned that the loans, called gap loans because they cover the difference between federal aid and the cost of college, could be exempt under language that was added to the bill to protect small businesses. For-profit institutions had urged lawmakers to reject the amendment, arguing that their loans already would be regulated under new 'Truth in Lending' rules that take effect in February. They asked lawmakers to wait and see if the new rules worked before adding a new layer of oversight."