President Obama signed legislation in Virginia Tuesday that affects students nationwide.

U.S. Rep. Tom Perriello was at the president’s side as Obama signed a bill that changes the way students get loans. The measure makes the government the primary lender to students, which means the banks no longer have all the power.

Obama signed the bill at Northern Virginia Community College in Alexandria. The legislation falls under the umbrella of the newly passed health care reform bill.

Under the measure, private banks will no longer get fees for acting as middlemen in federal student loans. The government will then use the savings to boost Pell grants, meaning lower interest rates and higher approval rates on student loans.

Obama said the changes are a way to make college more affordable for students and to make their debt more manageable after graduation.

“We can’t afford to waste billions of dollars on giveaways to banks,” Obama said. “We need to invest that money in our students. we need to invest in our community colleges. we need to invest in the future of this country.”

The program will affect local schools. so far this year, Piedmont Virginia Community College has processed more than $6 million in aid, and from that, more than $3 million in federal Pell grants. Those numbers are up from last year.

With the new law, Obama said Pell grants will more than double, which means more federal aid to Virginia students.

Obama said the new federal student loan program will save tax payers billions of dollars. it will also help achieve Obama’s goal for the United States to have the highest proportion of college graduates in the world.

Obama Signs Federal Student Loans Bill in Va.

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