Health care legislation passed by the House yesterday includes a companion bill that reorganizes college aid and increases grants for college students. The bill eliminates the student loan program’s reliance on private financial institutions and expands a direct lending program, a step that the Congressional Budget Office says would save $61 billion over 10 years.
Portions of the savings will be used to increase Pell grants for students. The bill sets automatic annual increases in the maximum Pell grant, scheduled to rise to $5,975 by 2017 from $5,350 this year.
That bill now goes to the Senate.