But critics of the bill passed Friday are concerned that it will quash the lending industry by steering colleges in the direction of Direct Loans administered by the Department of Education instead of federally guaranteed loans, which account for about 80% federal student loans.
Energy department loans director Jonathan Silver said Solyndra's failure should not reflect on the loan programme as a whole.
With bankruptcy protections returned to all student loans, the Department of Education will be forced to have skin in the game for the borrowers, not against them, a condition that Adam Smith or any other free market economist would agree is necessary for a healthy, capitalist lending system.
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It's similar to a proposal by the Bush administration, which calls on Congress to drop a requirement that the Energy Department's loans be used for investments in vehicle fuel efficiency.
Department of Energy is approving loans from the Strategic Petroleum Reserve to limit disruptions in crude supplies for refineries.
The Energy Department has long claimed that its loans were made on merit, and that in this case merit won out.
Their financial reforms studiously avoided doing anything about the subprime debasement, only the market has stopped those loans for now, which the Obama Justice Department is again calling discrimination.
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First Solar shares, which took a big hit last week on news that the Department of Energy was holding back loans it has expected to received to complete a large solar facility in Antelope Valley, California that the company is building for Exelon, continues to lose ground Monday morning.
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They also have skewered certain Energy Department programs that extended millions in taxpayer loans and other aid to alternative energy companies or projects that faltered or did not meet expectations.
But some argue that the government's attempts at modifying loans has been unsuccessful, noting that the Treasury Department estimates that the program may reach only half of the 4 million struggling borrowers it was intended to help.
The legislation would also allow the Department of Education to buy up some student loans made under the Federal Family Education Loan program.
And the White House may have interfered with a Department of Justice investigation into the embarrassing, illegal loans made by the Atlanta, Georgia branch of the Banca Nazionale del Lavoro.
According to a study by the Department of Housing and Urban Development, sub-prime loans are five times as common in black neighbourhoods as in white ones.
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The Massachusetts Department of Revenue did not believe that these arrangements were really loans.
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The Agriculture Department does not receive the paperwork from banks until after the grain is actually shipped, and department officials said they did not know who had made the loans.
The Department for Business confirmed that it had given the Treasury details of loans and grants made this year, as part of a review of all Whitehall spending decisions made since January that are above the level needing Treasury approval.
As part of the deal, Flagstar admitted that it had submitted false certifications to the Department of Housing and Urban Development, inducing the Federal Housing Administration to accept loans for government insurance that were not eligible and that resulted in losses to HUD when the loans defaulted.
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