New Student Loan Reform

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(WOIO) - Some major changes are about to be made to how you pay back your student loans.

President Obama signed an overhaul to the college loan program on Tuesday morning during a ceremony at the Northern Virginia Community College. It was tacked on to a bill that made a few changes of the new health care law.

President Obama says the new loan law should make it easier for students to unload college debt. [Get FAQS about student loan reform]

The new law will set aside an extra $40 billion dollars for what are called Pell Grants. Those aren't loans. That's money the government gives to students who qualify.

The law will give students easier terms to pay back the money they do borrow, starting in 2014.

For years, the government paid banks to loan money to students. The new law changes that. Now, the government will handle the loans on it's own.

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