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SAO PAULO, July 6 (Reuters) - The Brazilian government will relinquish some of the credit risk stemming from a state-subsidized student loan program as part of a broad overhaul of a costly initiative that has helped widen a record budget deficit.
Sharing the risk of student loan defaults with for-profit education firms is a way to fine-tune the so-called Fies program. Additional funding will come from constitutionally created regional funds, state development lender BNDES and private-sector banks, Education Minister José Mendonça Filho said at an event. The government will offer 300,000 Fies contracts from 2018. (Reporting by Ana Mano and Gabriela Mello; Writing by Guillermo Parra-Bernal; Editing by Jeffrey Benkoe)