Congressional Democrats and the Obama administration on Thursday outlined their final agreement on legislation to overhaul the government's student-loan system, with the savings providing annual inflation-adjusted increases in the Pell Grant and billions of dollars in additional aid for higher education.
After months of delays, the proposal was approved by Democratic leaders as part of a strategy to help ensure passage of President Obama's health-care-reform legislation. The House of Representatives is expected to approve the combined student-aid and health-care plan this weekend, followed by the Senate.