Released: September 07, 2007

Senate votes to increase student aid

Source: Associated Press [USA Today]

e Senate voted Friday to increase college financial aid by cutting roughly $20 billion in government subsidies to banks and giving it to students.
The bill would boost the maximum Pell grant, which goes to the poorest college students, from $4,310 to $5,400 by 2012.

The vote was 79-12.

The House is expected to vote on the bill later Friday and the president is expected to sign the legislation soon.

The bill would cut interest rates on federally backed student loans to poor and middle-class students from 6.8% to 3.4% over the next four years.

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