New measures being signed today will revamp the student loan program to help more Americans earn a college degree. Under the change, private banks and processors are to be taken out of the loan origination business and will no longer collect fees for acting as middlemen.
The savings, estimated at about $68 billion over 10 years, would instead be used to boost Pell Grants, reduce interest rates and stretch out repayment periods. Pell Grants help low- and moderate-income families pay for college.
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