A Wisconsin Congressman says federal legislation targeting the student loan industry may not go far enough. Congressman Tom Petri (R-WI) says it's a move in the right direction for reforming the industry, even though the final product is not as strong as what he'd originally pushed for.
The bill will cut federal subsidies for lenders that provide student loans. It also will cap monthly payments for borrowers and temporarily reduce interest rates. Petri says those steps should help to expand the availability of financial aid.
However, Petri says Congress must continue pushing for further reforms, such as making the process more competitive for lenders that want to provide students loans. He thinks an auction-like process will make private lenders more active in limiting what subsidies taxpayers have to provide.
The U.S. Senate and House both passed the bill on Friday. President Bush has said he will sign the legislation.