July 20, 2007

To Pay for Aid Increases, House Agrees to Cut Lender Subsidies

By SARA HEBEL and JEFFREY SELINGO

With a threat of a veto by President Bush looming, the U.S. House of Representatives approved sweeping legislation last week that would make some of the biggest changes in student-aid policy in a generation. The measure would slash nearly $19-billion in government subsidies to lenders and use the savings to expand federal assistance to students, make college loans more affordable, and reduce the federal deficit.

The bill, HR 2669, passed by a vote of 273 to 149. A total of 226

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