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by Associated Press , September 18, 2007
Banking industry officials have argued that the cuts in government subsidies could adversely affect services provided to borrowers, but Harkin said the reduction was needed.
"We have thrown tens of billions of dollars at the private loan program despite the fact that the direct loan program is cheaper and more effective," Harkin said.
If signed by President Bush as expected, the legislation will begin taking effect Oct. 1.
--Associated Press
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