December 14, 2014
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6:40Now Playing"House and Senate leaders have agreed to cut funding for the nation’s largest source of grants for college students to pay student loan contractors, according to legislationthat would fund the federal government through next year and avert a shutdown.
Money appropriated for the Pell grant program this year would fall $303 million, or 1.3 percent, to $22.5 billion, according to a proposal first introduced over the summer by retiring Sen. Tom Harkin (D-Iowa). Most of those funds would instead be used to pay private contractors that collect borrowers’ monthly student loan payments. Harkin has defended the move as necessary."
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