Obama Administration Plans To Strip $70 Billion Business Away From Banks

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In another blow to the earning power of banks, the government is preparing to revise higher education financing in a way that would deny them billions in fees.

Currently, banks receive fees from the governent for acting as middlemen for loans to low- and middle-income students. Under the new plan, the governent would eliminate those fees and increase the amount of Pell Grants available to students.

Banks and other private lenders, including Sallie Mae, do about $70 billion-a-year in student loan business, according to the AP.

(Associated Press contributed to this report.)

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