The Chronicle of Higher Education reports today that Congress has reached their final agreement, after months of negotiations, to overhaul the government’s student-loan system. This legislation would have the Education Department giving loan money directly to colleges and their students instead of the current system of using bank-based loans.
But naturally, the private lenders, which have received hundreds of billions of dollars worth of federal subsidies over more than four decades, have been protesting this right up to the last minute. The argument is that this bill will force the layoff of workers, primarily at Sallie Mae, the nation’s largest provider of student loans, while costing taxpayers more in the long run.

Also, despite rumors that this bill would not include money for two-year community colleges, it now actually provides for $2 billion for aid. Now, that is $8 billion less than what was asked for in the earlier version of the bill but at least there is a provision.

So, over all, while this bill has been cut back from the original amounts of aid as outlined in the House bill, it still is a boon to colleges, universities and students. And even though this bill is being used as political capital to make it more likely that House will approve the combined student-aid and health-care plan this weekend, hopefully the ends will justify the means.