Obama's proposed budget would eliminate federally subsidized third-party student lending and use the savings to expand Pell Grants and other student aid programs.

The Campaign for America's Future estimates the change would provide Pell Grant funding for an additional 5,225 students in Tennessee.

Among other changes, the Obama budget eliminates the Federal Family Education Loan Program, which subsidizes banks, and moves to the U.S. Department of Education’s Direct Loan program. The Congressional Budget office projects this move to save $94 billion over nine years. The Obama budget then redirects the savings to students.

Here's a report on how the changes would affect Tennessee along with a summary of the college affordability provisions in Obama's proposed budget.

Third-party lenders will likely oppose any such changes to student loan programs. But as you may recall, these companies have been the target of numerous probes regarding lending practices.