The bill sharply cuts subsidies to lenders and increases grants to low-income students in a bid to ease the strain of college costs. WASHINGTON - Congress on Friday approved the largest overhaul of federal student loan programs in 60 years, slashing subsidies to lenders by $20. Democrats hailed the legislation, describing it as the largest college aid package since the 1944 GI Bill and a boon to families at a time of skyrocketing college costs. Meanwhile, Minnesota students graduate with an average debt of $20,560, placing the state sixth highest in the country, according to the nonprofit Project on Student Debt. From July 1, 2009, onward, the bill would cap students’ monthly federal loan repayments to 15 percent of what the government determines to be their discretionary income. read more