Senate approves student loan bill

WASHINGTON, May 1 (UPI) -- U.S. senators took a step in the right direction by approving a bill intended to shore up the federal student loan business, a leading educator said Thursday.

Harris Miller, president and chief executive of the Career College Association, said the unanimous approval of the measure was "a major step forward," The Wall Street Journal reported.

The Ensuring Continued Access to Student Loans Act, quickly passed in an election year, temporarily allows the U.S. Department of Education to buy Federal Family Education Loans from private lenders, raises the limit on federal student loans by $2,000 and provides a six-month deferment after a child leaves schools on FFEL loans issued to parents.

About 50 lenders have stopped handling FFEL loans in recent months, claiming they are no longer profitable, the Journal reported.

The House passed the bill last month.

President George W. Bush issued a statement Thursday praising Congress for "swift action to address this vital issue."

"Millions of students around the country could potentially benefit from this important piece of legislation," said Bush. "In order to ensure that Americans can continue to compete in the global marketplace, the federal government has an obligation to encourage and support people pursuing higher education. By granting the Department of Education greater authority to purchase Federal student loans, today's action should ease the anxiety many students may feel about their ability to finance their education this fall."