Congress made some sweeping changes this month to college–aid programs, injecting new funding into federal grants and withdrawing some support from private lenders.
Congress voted to raise the maximum Pell Grant–the fed’s main educational gift to low- and middle-income college students–to $5,400, up from $4,310. It also promised to yank $20 billion over the next five years from student-loan lenders, who’ve recently been mired in accusations of lending irregularities and conflicts of interest.
Though lenders have squawked, the bill’s congressional supporters stand by the changes. “The reality is that our bill restores the balance to this grossly unfair student–loan system by directing funds to the students, not to the banks,” said Sen. Edward Kennedy. (New York Times)
