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TUESDAY, APRIL 30, 2002

The Bush administration wants to end a college loan policy that allows students to save money by consolidating their debt.

The changes would affect a feature of the Pell Grant program which allows students to consolidate loans at a fixed rate. The Bush proposal would not allow a fixed rate but a variable one.

Depending on the loan amount, consolidation can save students thousands of dollars.

The Pell Grant program is seeing a $1.3 billion shortfall and ending the policy would help make up for losses.

Get the Story:
U.S. Seeks to End a Student Loan Break (The Washington Post 4/30)

Relevant Links:
Federal Pell Grants - http://www.ed.gov/prog_info/SFA/StudentGuide/2000-1/pell.html