Loophole in loans closed
The House of Representatives unanimously passed a bill Oct. 7 to close a loophole that allowed companies that lend students money to profit from student loans. The loophole in the Higher Education Act, which covers many federal student aid programs, allowed lenders to mix and match loans and collect 9.5 percent interest on them. Students see an interest rate of about 3.4 percent, and the government pays lenders the difference.