Conrad confirms bank exemption

Senate Budget Chairman Kent Conrad (D-N.D.) said Thursday that the Bank of North Dakota would continue to receive federal subsidies under the health care reconciliation bill that would eliminate most federal subsidies to banks that make student loans.  

Conrad, a proponent of the health care legislation, called it an "unusual situation" because the bank is "owned by the people of the state." He said any other bank meeting the same criteria also should be exempted. 

Conrad told reporters that he didn't ask for the exemption and he reiterated that he already supported the education provisions added to the health care legislation. 

He also emphasized that the bank has a default rate of 1.8 percent, one-quarter of the federal rate of 7.8 percent. 

"The bank doesn't outsource the servicing of the loans like other banks," Conrad said.