CHEYENNE - The Cheyenne-based non-profit Wyoming Student Loan Association will suspend making new loans indefinitely starting in March as it eyes legislation that would put the government in charge of all federal student lending.

Also known as WyoLoan, the corporation announced in a media release Friday that it won't give out any loan money to students or parents after March 31. Until then, WyoLoan will continue to fund loans it has already approved, the release stated.

WyoLoan, like other private student loan lenders around the country, administers public college loans that are subsidized by taxpayers. WyoLoan relies on current loan receipts to fund future student loans.

But that business model may soon be out of date, thanks to legislation passed by the U.S. House of Representatives last month that would have the government administer student loans directly, taking private lenders like WyoLoan out of the picture.

Supporters of the legislation, the Student Aid and Fiscal Responsibility Act of 2009, say direct loans from the government will protect students from market swings.

But WyoLoan, as well as Wyoming's congressional delegation, say the bill takes away students' right to choose their own lender.

The legislation is currently being considered by the U.S. Senate.

WyoLoan will consider ending its suspension on new loans if the bill fails, the release stated.

Founded in 1980 at the request of former Gov. Ed Herschler, WyoLoan has lent more than $1 billion to more than 75,000 students and parents.