President Obama signed a financial aid bill into law that would cut out banks in the lending process for college students.

The U.S. House of Representatives approved what has come to be known as the Student Aid Initiative on March 21. The initiative will free up nearly $68 billion in savings for Pell grants and reform current student loan policies by eliminating fees paid to private banks.

"It's awesome -- they should give us more," said Jonathan Mojarro, a financial services and corporate finance double major currently borrowing $8,000 for tuition. "I believe that at the national level creating a better opportunity for students is great, nowadays it's impossible to pay."

The initiative will raise the maximum Pell grant to a maximum of $5,975 from $5,550 over the next six years, redirect loans to the government rather than banking institutions and capping the loan repayment rate at 10 percent instead of the current 15 percent.

"If you're going to extend (the reimbursement) over the long run through smaller payments, that's better than higher payments," said Jon Weyant who has three private loans, which will cost him nearly $3,000 to $4,000 in interest.

For students that plan to continue their education the bill comes as a relief.

"I have to go to graduate school for respiratory therapy, which will add another two years and my parents won't pay, so (the bill) helps me out because it's going to be hard to find a job after school," said biological chemistry major Gelline Mejia. "It's always nice to know that you don't have to pay more than you have to."