President Bush signed a bill into law last week that will temporarily close a loophole that has allowed lenders to collect hundreds of millions of dollars in subsidies over the past few years. The subsidies, known as “special allowance payments,” will be cut off for one year under the bill approved by Congress last month. Savings from cutting off that loophole will be redirected to federal student-loan forgiveness for those who go on to teach math, science, and special education in Title I schools.
