"President Barack Obama criticized the largest U.S. banks on Monday for trying to thwart legislation that would overhaul federal student loan programs," Reuters reports. "He singled out in particular banks that have received bailout money from the federal government, saying they want to maintain the status quo on student loans because they get an 'unwarranted subsidy' from it. The U.S. House of Representatives last week approved legislation that would cut major banks and student loan giant Sallie Mae out of a large slice of the $92 billion university student loan business, shifting most lending into a program run by the U.S. Education Department. The bill, strongly backed by Obama, will go next to the Senate for further consideration."

You can read the complete Sept. 22, 2009 Reuters article on-line.

Additional Media Coverage

Obama Criticizes Banks Over Student Loan Subsidies The New York Times

Obama praises House for student lending reform The Hill

Obama stumps for student loan plan, hails new Web rules The Los Angeles Times

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