March 5, 2008

Education Department to End Loan Provision That Helped Wealthier Graduates

By Paul Basken

Washington

The Education Department announced on Tuesday that it would end a "hardship" provision that would have reduced interest payments for low-income college graduates by more than $1-billion over the next decade. Student-aid advocates largely agreed with that decision, saying the provision had often benefited students who needed help the least.

Department officials had planned to let the hardship provision exist as an alternative for borrowers alongside a new income-based repayment

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