WASHINGTON - Student loan lenders squeezed by the credit crunch expressed mixed views yesterday about a proposal in which the Department of Education will advance lenders money on a short-term basis to originate new loans if they are otherwise unable to access capital. If lenders remain unable to issue debt backed by the loans they originate, the department will agree to purchase them through September 2009.

Though lenders were quick to laud the Education Department for acting quickly to try to prevent a student lending crisis, they were skeptical of the proposal to give the department servicing rights on the loans it purchases.

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