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New Student Grants Improve Student Aid

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Student grants help aid students

In what critics are calling the “largest overhaul of federal student aid,” the Obama administration has finally eliminated the middleman in government grants for students. This increases the lending from the government in the forms of student grants to billions of dollars that the government will distribute to needy students.

In a neat little package with the new health care bill, the House passed the bill yesterday, after a vote to approve the health care bill. The package now heads to the Democratic–led Senate for another vote of concurrence, before it will formally be introduced to the public.
The Democrats want to eliminate the middleman from the process – the private lenders actually cost the government billions of dollars.

Analysts project a savings of $61 billion dollars over the next 10 years, to go towards funding students through government grants.

“This is good for students, taxpayers and American jobs,” said House Education Committee Chairman George Miller, a Democrat.
The Republican party does not support this kind of government intervention, as the party’s policies are based on free market and very small role for the hand of the government.

House Education Committee Chairman Miller defended the proposal, saying, “We can reform the student loan program by taking these wasteful subsidies (to private lenders) — and redeem the savings for millions of families and students who want a shot at attending college.”

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