WASHINGTON -- Congress is expected to give final approval this week on legislation that would allow schools to test a new college financial aid system that could eventually end the need for tax-exempt student loan bonds.

House and Senate conferences agreed last week to the proposal, which would allow a selected number of colleges to make and service their own student loans for four years beginning in 1994. Later in the week, the Senate passed the plan, as part of a larger package needed to reauthorize the Higher Education Act of 1965.

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