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He proposed reducing loans for shipbuilders, a pet program of Senator Trent Lott of Mississippi, the Republican leader.
Most colleges will apply the outside scholarships first to any unmet need, then to reducing loans and work-study.
Meanwhile, Glencore said around $2.4bn is to be saved by not paying dividends; $2.5bn generated from cost cuts within the business in working capital and capital expenditure; $2bn to be raised from the selling assets, including stakes in agricultural assets; and up to $800m saved reducing loans made by the company.
These enhancements included eliminating loans for families with incomes less than $40,000; eliminating the parental contribution for families with incomes less than $60,000; reducing loans for students from families with incomes up to $100,000; and capping loans for eligible families with incomes above $100,000.
Similar(56)
It is credited with reducing loan and mortgage rates, but fails to increase lending to businesses.
The idea of reducing loan principals last month became a centerpiece of the administration's efforts to help seven million households threatened with foreclosure.
The managers are reducing loan portfolio risk even as they build up sales.
In reality they mostly came from reducing "loan loss reserves".
"But the government is coming up with various measure to reduce loans to households".
About four-fifths of colleges will allow scholarships to reduce loans before reducing the college's own grant funding.
If the policy reduces loans first, the college will have a lower net price, making it more affordable.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com