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DIRECT LOANS ARE A BAD DEAL.(OPINION)(Letter to the Editor)
- Article from:
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Wisconsin State Journal (Madison, WI)
- Article date:
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June 24, 2004
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Copyright informationCOPYRIGHT 2004 Capital Newspapers. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Wisconsin State Journal editorial June 17, "Preserve Balance in Student Loans," cites competition between the Department of Education's Direct Loan Program and the Federal Family Education Loan programs as producing benefits for students, colleges and taxpayers.
What the editorial doesn't mention is that although the FFEL program has existed for decades (while the Direct Loan Program began in the mid-1990s), the Direct Loan Program benefits taxpayers by costing less than a penny on the dollar to administer.
On the other hand, the FFEL program costs nearly a dime on the dollar due to the fact that the government guarantees banks that administer these loans a margin ...
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