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The President Reforms Student Loans

Last week, the House and Senate approved a budget reconciliation bill that utterly overhauled the nation’s health care insurance system.

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There was something very interesting tucked into the bill that I could unabashedly proclaim a very good thing: an accompanying set of reforms to the quagmire of student lending. A good portion of you are probably familiar with the previous system, where private lenders extended to students loans that were guaranteed by the federal government. That arrangement was nothing short of lucrative for those lenders — earning the banking industry $70 billion, by some measures — and unsurprisingly, they were staunch opponents of the bill.