WASHINGTON - The banking industry took another modest step toward salvaging the guaranteed student loan program when a Senate panel voted to limit the federal government to half the market untit at least 1998.

Only 24 hours earlier, the Labor and Human Resources Committee appeared to have settled on a compromise that would have permitted the government to take 100% of the market in 1997.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.