Subsidys cut may flop SLM deal

--House approved $19 billion in subsidy cuts to student lenders over five years --Buyers can withdraw the offer --SLM's statement underscores the growing hostility in Washington toward the student-loan industry amid allegations of corruption and conflict of interest. It also reflects the growing skittishness of private-equity investors --House voted to used money to increase grants to low-income students --Student loan industry has been under fire following a string of revelations about payments --Unless buyers can show "material adverse effect", they will have to pay $900 million to walk away. --Offer has 50% premium --Buyer's cold feet may be a ploy to negotiate a lower pride of Sallie Mae