WASHINGTON - Many state agencies that guarantee student loans are worried they will become insolvent in the next few years as a result of legislation passed in August that mandates cuts in their revenue streams, state officials and lobbyists say.

"Several agencies have suggested that the cumulative impact of the subsidy reductions will be to create widespread insolvency in the guaranty agency community," the Consumer Bankers Association said in a recent edition of its newsletter, CBA Reports.

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