NCHelp.org had that great summary of what’s going on with President Bush and the bill currently before the Senate:

Administration Issues Veto Threat on Senate Reconciliation Bill

The White House issued its moment Statement of Administrative Policy of the week yesterday that threatened veto on the Higher Education Access Act of 2007. It stated, “…the Administration cannot support Senate passage of S. 1762 in its current mold considering of serious concerns with some provisions of the bill, and will work with Congress to address them as the legislative process goes forward.” The Administration has expressed concern by:

• Proposed student loan auctions that could “reduce choices for students and parents and involve immense implementation issues that threaten to disrupt services and limit loan availability;”
• Multi-year mandatory funding to create three new programs that
  the Administration contends “poorly target aid to needy students and serve narrow constituencies;” and
• New spending derived from making the student loan programs increasingly efficient. The Administration believes the savings “should be incorporated into the current Pell Grant program in order to avoid unnecessary complication to the student aid programs and their administration and other areas listed in the statement.”

Further, while the Administration supports the bill’s reduction of special allowance payments (SAPs) to student loan holders, it notes that these types of reductions raise complicated issues. According to the statement, as the subsidy cuts differ in the House and Senate bills, the President intends to work with Congress on how best to implement fair reductions in these federal subsidies and avoid unintended consequences that may lessen savings.