Panel OKs cuts to student lenders
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A Senate panel voted to cut federal subsidies to student-loan providers by $18.3 billion and use the savings to increase aid for low-income students.
The Senate Health, Education, Labor and Pensions Committee voted 17 to 3 to reduce government payments to lenders such as Sallie Mae and Bank of America Corp. The money would be used to raise the maximum annual award over five years in the main government scholarship for low- and moderate-income students, and to establish a new grant program.
The plan is similar to legislation a House panel backed last week that would increase grant funding and cut subsidies by $19 billion.
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