Obama Signs New Student Loan Bill

President Barack Obama signed the final piece of the government's health care reform when he approved an overhaul of the student loan process yesterday.

According to the Associated Press, President Obama signed into law the new student loan legislation that will eliminate banks from the lending process and make the government the primary lender to college students.

In recent weeks, college students across the country have been loudly protesting the hikes in tuition and the state budget cuts that are wreaking havoc on their education. During an appearance at a community college in suburban Virginia, Mr. Obama touted the passage of the bill.

"I didn't stand with the banks and the financial industries in this fight—that's not why I came to Washington—and neither did any of the members of Congress who are here today," Obama said to a supportive crowd at Northern Virginia Community College. "We stood with you. We stood with America's students."

Though private lenders will still be able to provide loans to students, loans won’t be backed by the government. The move is certain to impact the $70 billion industry.

The new law is expected to make it easier for some college graduates to repay loans. Students with low paying jobs will be able to readjust their payments according to their income. Current law caps monthly payments at 15 percent of these workers' incomes; the new law will lower the cap to 10 percent.

About half of undergraduates receive federal student aid and about 8.5 million students are going to college with the help of Pell Grants.