WASHINGTON – The new Democratic majority is expected to approve a bill today that would cut interest rates on guaranteed student loans in half, at the expense of banks, credit unions and other student lenders. The measure would reduce the rate on subsidized Stafford loans from 6.8% to 3.4% over the next four years and put new pressures on the few credit unions that continue to participate in the guaranteed loan program. Under the Democrats’ plan the $6 billion in estimated savings for students would be made up in higher fees on participants in the student loan program. President Bush says he is opposed to the Democratic bill, saying he believes it will encourage even more borrowing by debt-laden students. Hundreds of credit unions have abandoned the student loan program over the past five years as the market has become increasingly dominated by huge layers, including Salle Mae, the former government sponsored enterprise that has become the leading provider of student loans.
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As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
July 4 -
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
July 3 -
A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
July 3 -
Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
July 3 -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
July 3