Important:
Congress Passes Overhaul of Student Aid Programs
By DIANA JEAN SCHEMO
WASHINGTON, Sept. 7 — Congress gave final approval to a broad overhaul of federal student loan programs Friday, sharply cutting subsidies to lenders and increasing grants to needy students.
...It also raises the maximum Pell grant, the basic federal grant for middle- and low-income students, to $5,400 from the current $4,310 over the next five years. To pay for the changes, the bill reduces federal subsidies to lenders by roughly $20 billion over the same period.
This is a positive development. It means that money that was going to the banking industry is being redirected back to student aid.
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