House-Passed Bill Allows CUs to Make More Student Loans
WASHINGTON -- Credit unions could increase the size of their student loan portfolios, under a bill approved today by the House of Representatives.
The bill makes credit unions with assets of less than $1 billion exempt from the rule that a financial institution can't have more than 50% of its loan portfolios in student loans. The measure, which passed 380-49, gives credit unions parity with similar-sized banks, which had previously had that exemption.
The wide-ranging measure expands the availability of student loans and contains provisions to protect students and their families from abusive lending practices. It also requires lenders and colleges to adopt strict codes of conduct. The measure also clarifies reporting requirements so that financial institutions with the same name as a college or university must clearly state that a loan is from the institution not the school.
The Senate could take up the measure as early as this evening or tomorrow.