MinnPost: Plan to expand student loans will be part of reconciliation bill
Posted in News Clips on March 16th, 2010WASHINGTON — A dramatic expansion of the federally issued student loan program will be included in the same reconciliation bill as health reform, House Democratic officials and the White House officials have confirmed.
“The current plan is to also have the higher education bill that also passed the House be part of the reconciliation package,” said Dan Pfeiffer, White House communications director.
Federally subsidized private loans would be eliminated and replaced with the federal Direct Loans program. Money saved would be used in part to offer more Pell grants and reduce the cost of the health care package. The plan — which already passed the House as a stand-alone bill — would affect most higher education institutions, though not the University of Minnesota, which made the switch to Direct Loans about 15 years ago.




