As the Democratic takeover of the House sidelines Santa Clarita's Republican Rep. Howard P. "Buck" McKeon, changes are expected in how the committee he chairs handles student loans.

Democrat Rep. George Miller, who's expected to replace McKeon as chairman of the House Committee on Education and the Workforce, wants to halve the interest rate charged on loans to needy students.

He also wants to increase the number of "direct" loans that the government makes to students. The president's budget office found those kinds of loans cost the government less than federally backed loans from private lenders...

Private lenders pressure the government to guarantee a certain rate of return on their student loans, which were historically risky investments. But critics say the system puts lenders ahead of students.

"It drives me crazy how much taxpayer money has been wasted on excessive subsidies for student loan companies, instead of making college more affordable for families," said Michael Dannenberg, director of education policy for the New America Foundation...

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