New federal legislation that cuts “middle man” private banks out of financial aid will save the federal government a projected $68 billion — much of which will be directed to shore up Pell Grants for students, including tens of thousands in Texas. The new rules, passed along with the controversial health care legislation, will prevent feared reductions in financial aid to students who are paying ever-increasing tuition in Texas and other states.

The primary benefit to current students, according to Tom Melecki, director of student financial services at the University of Texas, is that the size of their Pell Grants won ...

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