The program for a major overhaul of the federal student loan program was approved today by the Congress. The final vote, 79 - 12 , showed that there was a strong support for the changes in both sides of the political map and now those searching for a student loan are looking forward to see if President Bush will sign the bill or veto it , which rumors say was his intent with an earlier version of the bill.
The new legislation makes it easier for student with low income to be qualified for a student loan. Those who work in public professions like teaching for 10 years or more will have their maximum loan repayment set at 15% of their salary. Another change was made to maximum student loan offered to low and medium income students (called Pell grant) which will stand at $5400.
Changes to the student loan program where high on the list of promises the democrats made before the recent elections and some of them were happy to demonstrate to explain and show how the Democrats kept their promise: George Miller, chairman of the House of Education said the Republicans took 12 Billion away from Pell grant (the federal student loan program) last year and the Democrats are putting them back with this legislation.
However not everyone was happy. In order to pay for the new changes, more than $20 billion were slashed from lender subsidies and many lenders threaten to compromise the student loan program claiming that it will drive many of them out of business.