Senator Calls on Fed, Treasury to Ensure Families Can Get Student Loans
Senate Banking, Housing and Urban Affairs Committee Chairman Christopher Dodd, D-Conn.,
called on the Treasury Department and the Federal Reserve on
Tuesday to help prevent a collapse of the student loan market, another financial sector hampered by the collapse of
the subprime mortgage industry.
To ensure families continue to have access to student loans, Dodd said the Federal Reserve could use existing
monetary policy tools to inject liquidity into the struggling student loan industry, according to a CNNMoney.com article. Dodd
also suggested that the Treasury could consider tapping into the Federal Financing Bank,
which issues loans at favorable rates.
“If the Fed and Treasury can commit $30 billion of taxpayer dollars to enable the takeover of Bear
Stearns by JPMorgan Chase, then surely they can step in to enable working families to achieve their dream of a
college education for their kids,” Dodd said in a Senate hearing on April 15.
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