WASHINGTON, July 11 — The House approved far-reaching changes in student aid programs today, voting to slash $19 billion in federal subsidies to student lenders, and use the savings to raise aid for needy students and cut in half the interest rates on federally backed loans.
The measure was approved 273 to 149, in a sometimes raucous debate, with 47 Republicans joining Democrats to assure its passage.
Democrats who took control of Congress this year had campaigned on promises to help the middle class with the escalating costs of higher education. The legislations signals a sea change for the student loan industry, which had largely enjoyed unflagging support under the Republican majority of the past decade.
Wednesday, July 11, 2007
New York Times: By DIANA JEAN SCHEMO