The U.S. House of Representatives' approval of tighter restrictions on the preferred lender relationships between student loan providers and universities is not expected to adversely affect the securitization industry. However, market professionals are already awaiting further Congressional actions that could significantly impact the SLABS sector.

By a 414-3 vote last Wednesday, the House passed the Student Loan Sunshine Act. The legislation aims to bring more accountability and openness to the relationship between universities and the preferred lenders that receive business from them.

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