WASHINGTON--House and Senate conferees have approved an education bill containing a direct-loan program so large that it could disrupt the present college financial aid system, lobbyists say.

Currently, banks lend money to students and sell the loans to state higher education authorities, which often finance their purchases using tax-exempt student loan bonds. This week, however, the conferees adopted a bigger program than originally proposed to test the idea of having colleges make and service their own student loans.

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