Congress passed and voted on February 1 the Deficit Reduction Act of 2005, including a massive reduction in federal student loan programs. The $ 11.9 billion in student loan cuts, including changes in laws relating to the consolidation of student loans, which have a negative impact on students seeking a college education and others who seek to consolidate their loans of more high. The industry expects a rush of students seeking to consolidate the current low rates that are expected to increase July 1.

The Deficit Reduction Act of 2005, S. 1932 was approved on February 1 the strict sense of the House of Representatives. Passing by a margin of two votes of 216-214, S. 1932 was signed into public law Feb. 8 by President Bush, thereby approving the $ 11.9 billion in student loan cuts over the next five years.
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