http://slatest.slate.com/id/2248353/?wpisr...

Democrats Introduce Legislation To Increase Pell Grants

New legislation introduced by congressional Democrats on Thursday would raise the maximum annual Pell grant to $5,975. Thirty-six billion dollars in new financing would help to cover the increase as well as cover a $13.5 billion shortfall created this past year when an overwhelming number of Americans went back to school during the recession. "Congress would pay for the larger grants by ending subsidies to private banks that make student loans and shifting to direct federal lending," the New York Times reported. "But the amount going to education spending and aid for college students is far less than the Obama administration had hoped, largely because the savings from the switch to direct federal lending is now estimated to be $61 billion, rather than $87 billion." Additionally, some of those savings will go toward offsetting the cost of a health care overhaul and toward deficit reduction. "This legislation offers the most sweeping changes to the federal student loan program in a generation," said Rep. George Miller, chairman of the House Education and Labor Committee.