Plans to Change Student Lending
President Obama plans to end federally subsidized student loans as part of a plan to save money. By eliminating private lenders, $94 million could be saved by the feds in the coming decade. And billions of dollars in bank profits would be redirected to fund scholarships under the plan.
Lenders are outraged, and many accuse Obama of trying to expand government and limit congressional control.
He intends to give the entire student financial aid program a sweeping overhaul. As noted in previous speeches and public addresses, the president wants to help college students financially in exchange for work and service to the community.
Sources:
http://www.nytimes.com/2009/04/13/us/politics/13student.html?_r=1&hp
Statements made by the president recalled from memory.