House and Senate negotiators agreed on legislation that would halve interest rates on need-based federal student loans over the next four years. Democrats described the legislation as costless to taxpayers, saying the rate cuts would be offset by a reduction of nearly $21 billion in subsidies paid by the government to lenders in the federal loan program. The bill would also raise the maximum Pell grant to needy students to $5,400 over the next five years from $4,050. Lawmakers could vote on the final version of the bill as early as today.
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Past Coverage
- New Ties Found to Link Lenders and Colleges (September 5, 2007)
College Board Quits the Loan Business (August 23, 2007)- EDUCATION DEPT. CRITICIZED AS LAX IN POLICING LOANS (August 2, 2007)
- S T U D E N T L O A N S/V I E W P O I N T; The Profit and The Pauper (July 29, 2007)
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