Credit unions and banks today lost another round in the fight for control of student loans today when the House voted 253-171 to approve the Obama administration's plan to replace the Federal Family Education Loan Program with direct student lending.
Approximately 1,000 credit unions offer these loans but the Obama administration contends that by replacing them with direct lending will save $87 billion over 10 years.
The House Education and Labor Committee passed the bill 30-17 in July, mostly along party lines and the full House is likely to pass it. However, its fate in the Senate is less certain, since Republicans have more tactics available to them to thwart legislation.
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