Students, particularly those from low-income backgrounds, could find it easier to pay for college education through a new federal program.

In a bid to "head off a potential crisis" in college funding, the LA Times says the US Department of Education has unveiled plans to buy loans from lenders, double the amount of loans it underwrites and increase its lending initiative for low-income students.

The national program came into force after Congress passed the Ensuring Continued Access to Student Loans Act earlier this month.

The new law will also allow students to borrow more for their education if necessary under the Federal Financial Education Loan Program.

In a statement, secretary of education Margaret Spelling said: "We want students to be able to concentrate on their studies rather than worry about disruptions in the student loan market and whether they will be able to obtain federal loans to help pay for school."

Financing options for funding degree studies currently include a federal loan directly to the student, a federal loan to the student's parents or a loan from a private lender.

The new agreement will come into effect for the 2008-09 academic year.