And I am not sure that private lending institutions were ever involved with administering PELL grants.

The article that pdq posted lacks any sufficient detail on which one could possibly draw any informed conclusions, regardless of one's sociopolitical paradigm. The only thing that I can surmise from the article is that the House passed a bill that makes changes in federally funded, subsidized, or guaranteed loan programs and grants-in-aid that may affect both how at least some of the assorted programs are administered, the amount of grant-in-aid money that may be available to some students, and the total funding package includes funding that goes to the educational system, without specifying what, in addition to affecting student loans and grants-in-aid.