Government would take charge of student loans
WASHINGTON — The House voted yesterday in favor of the biggest overhaul of college aid programs since their creation in the 1960s — a bill to greatly reduce the role of private lenders in the student loan business and put the government in charge.
The vote was 253-171 in favor of a bill that fulfills nearly all of President Barack Obama's campaign promises for higher education: The measure ends subsidies for private lenders, boosts Pell Grants for needy students and creates grant programs to improve community colleges and college graduation rates, among other things.
“These are reforms that have been talked about for years, but they're always blocked by special interests and their lobbyists,” Obama said yesterday during a rally at the University of Maryland.
“Well, because you voted for change in November, we're going to bring change in the House of Representatives today,” the president said.
Ending loan subsidies and turning control over to the government would save taxpayers an estimated $87 billion, according to the Congressional Budget Office. Lawmakers would use that money to help make college more affordable, increasing the maximum Pell Grant by $1,400 to $6,900 over the next decade.
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