"Even as college financial aid directors continue intense debate over President Obama's plan to end the guaranteed student loan program, most of the major higher education groups signed a letter Tuesday urging members of Congress to back the proposal, saying the major benefit -- using the savings to guarantee a permanent stream of funding for Pell Grants -- outweighs concerns about the change," Inside Higher Ed reports. "Representatives of the House and Senate are preparing to meet to resolve differences between the two chambers' budget resolutions, which set the broad terms of the process by which Congress will craft the 2010 federal budget. The House version largely endorsed Obama's proposal to originate all loans out of the direct loan program instead of the competing bank-based program, and to use the proceeds -- which the Congressional Budget Office estimated at $94 billion over 10 years -- on additional aid for students. The central idea: shifting funding from Pell Grants to the mandatory side of the budget, ensuring an annual increase and avoiding the whims of lawmakers. The Senate budget proposal supported the idea of setting aside funds for Pell Grants but did not back the student loan plan."