WASHINGTON -- Despite the objections of several panel members, a House subcommitte approved legislation yesterday that would revamp the federal financial aid system for college students and could eliminate the need for tax-exempt student loan bonds.

Republicans on the House Education and Labor Committee's Sub-committee on Postsecondary Education said they woould work to block the proposal when the full committee considers it in the next few weeks. But the plan has strong backing from the committee chairman, Rep. William D. Ford, D-Mich., and many other panel Democrats, education lobbyists said.

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