CHICAGO - Changes in the federally guaranteed student loan program contained in President Bill Clinton's budget may spur secondary market loan agencies to issue more debt to purchase loan portfolios from lenders.

Laurie Quarales, deputy director of the National Council of Higher Education Loan Programs, which represents providers of financial aid for students, said there is "great expectation" of expanding the loan purchasing greope of the secondary market agencies, which buy student loan portfolios from banks through the issuance of tax-exempt and taxable debt.

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