US Senate votes to cut student lender subsidies

WASHINGTON, Sept 7 (Reuters) The US Senate voted overwhelmingly today to adopt legislation that would slash government subsidies to student loan firms and use the money saved to boost student aid by billion and to reduce the federal deficit.

The subsidy cuts are expected to hurt the profits of major lenders such as Sallie Mae, Citigroup, Bank of America Corp, JPMorgan Chase&Co and many others, according to industry analysts on Wall Street.

The House of Representatives was expected to vote later today on the legislation. It would then go to the White House, which has said President George W. Bush would sign it.

REUTERS PDT KN2045