Financial Aid Overhaul

" What would be a major shift in the way young Americans get money for college the House of Representatives today voted to kick private lenders out of the student loan business. Peter Barnes Fox Business Network is covering this from DC eight Peter this means that the government would be the place you go for -- I guess they want to centralize it right."

" Well that's right -- right now the federal government's main role in billions in loans made each year to college students is to guarantee banks and other financial firms that make. Those loans that they will be -- paid if a student experiences financial problems for example in this economy. The student might not get a job quickly. Today the house approved legislation that would effectively. Push the banks and the other companies out of the business and make the government the primary lender to college kids. Hey this is a move that the president has supported but it's really not clear what might happen to it in the Senate Republicans seemed strongly opposed to it. Well that's right the president supported this change saying that the government guarantees simply provided subsidies to the banks in the other companies. The Congressional Budget Office estimates the change we'll save the government 87 billion dollars over the next decade. Money the president wants to use for more college loans grants and other higher education programs. But some Republicans argue that this is just another government takeover of a system that is operated. Kinda well and they worry the Department of Education -- mess it up Peter Barnes live on Capitol Hill thanks Peter the."