House votes to revise student aid formula, expand federal loans

The House of Representatives passed legislation Thursday that expands federal aid to college students while ending federal subsidies to private lenders. (New York Times)

By shifting to direct federal lending, the Obama administration said it would save more than $80 billion over 10 years, which would go into higher Pell Grants for low-income students, new investments in community colleges, early-childhood programs and other education efforts.

The vote was 253-171. The measure, the Student Aid and Fiscal Responsibility Act, now goes to the Senate, where Democratic leaders expect it to pass.

“This legislation provides students and families with the single largest investment in federal student aid ever,” said Rep. George Miller, D-Calif., and chairman of the House Education and Labor Committee, who wrote the bill. “Today the House made a clear choice to stop funneling vital taxpayer dollars through board rooms and start sending them directly to dorm rooms.”

Click here for The New York Times story.