"A bill that the chairman of the U.S. House of Representatives education committee will introduce today would end the bank-based guaranteed-student-loan program, provide additional mandatory money for Pell Grants, and expand the Perkins Loan program from the current $1-billion to $6-billion a year, while overhauling its structure, Congressional aides confirmed Tuesday night," Chronicle of Higher Education reports. "The bill, which the House education committee is expected to take up next week, largely mirrors President Obama’s budget proposals. It would shift all student loans into the government-run direct-loan program, remove colleges from the process of making Perkins Loans, and end the interest subsidy on Perkins Loans while the borrowers are in college. Under the bill, banks and other lenders would no longer originate federal student loans, but they could compete for the right to service them. And guarantors could compete for grants to provide borrower services like financial-literacy education, default prevention, and borrower retention."