U.S. Balks at Proposed Sale of California Guarantor
August 2, 2010

The U.S. Education Department has told state officials in California that the federal government will terminate its agreement with EdFund, the state agency that guarantees federal student aid, and replace it with another entity, the Sacramento Bee reported. The department's decision could threaten Gov. Arnold Schwarzenegger's plan to sell the troubled agency, which has been in turmoil for years.

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