A bill was passed in the U.S. Congress Wednesday in response to some universities favoring loan companies that bribed college loan officers with gifts and travel packages.
Congress passed the Student Loan Sunshine Act in a 414 to 3 vote, which, if it passes the senate, would make it illegal for colleges to endorse specific loan companies and prohibit companies from giving gifts to loan officers.
U.S. Rep. Tom Petri, R-Wis., said in a statement the corruption that grew between lenders and schools was due to the Federal Family Education Loan program using private loan companies instead of having the government give aid directly to students.
""I publicly called for an end to the FFEL program due to its fundamentally broken structure,"" Petri said.
Petri also said $5 billion was spent by the government in subsidies to the loan companies. The Treasury Department and the Government Accountability Office agreed with the assessment according to Petri.
""Students and taxpayers deserve better,"" Petri said, ""and Congress has the responsibility to deliver these critical reforms this year.""
The Senate version of the bill has yet to be passed, and would need to be signed by the president in order to become law.
