Article from the Public Education Network Weekly Newsblast

As part of his sweeping healthcare overhaul, President Obama has made the federal government primary lender to students, the Associated Press reports. A final set of tweaks to the healthcare bill created an opening for the far-reaching legislation, the largest rewrite of federal college assistance programs in four decades. About half of undergraduates receive federal student aid, and nearly 8.5 million students attend college with the help of Pell Grants. Under the measure, private banks will no longer get fees for acting as middlemen in federal student loans, and the government will use the savings to boost Pell Grants and make it easier for loan repayment. In addition, some borrowers could see lower interest rates and easier approvals. The president has promoted the changes as a way to make college more affordable for students, with a debt load more manageable after graduation. "This reform of the federal student loan programs will save taxpayers $68 billion over the next decade," Mr. Obama said in his weekly address. "And with this legislation, we're putting that money to use achieving a goal I set for America: By the end of this decade, we will once again have the highest proportion of college graduates in the world."

http://www.signonsandiego.com/news/2010/mar/30/obama-to-sign-student-loan-legislation-in-virginia/