President Barack Obama made a campaign pledge last year to end the federal government's practice of subsidizing private companies that lend college students loans. This year, that promise may come to be realized through the House of Representatives actions to cut off most subsidies to private lenders, saving the government an estimated $87 to $47 billion dollars. The estimated savings would increase annual Pell grant payments from $1,400 to $6,900 over the next decade. While this bill would be the largest overhaul of the student loan system since its inception in the 1960's, it does nothing to curb the growing costs of college; which rise annually faster than Pell grants. The bill does not make school cheaper, and it does not make it easier for students to pay off their existing loans. However, it does keep the interest rates of need-based loans from rising to 6.8% - as they were scheduled to have had changed by the end 2012. The fear from opponents is that the passage of this bill would cause massive job cuts to an industry that employs 30,000 workers nation wide. If the bill becomes law, private lenders will of course still be allowed to make loans to prospective students, but they will have to do it without federal subsidies. To read the entire article please click here.