Wednesday, October 26, 2005

Student Loan Cuts Get Even Bigger

From my Chronicle of Higher Ed news email this morning:

* REPUBLICAN LEADERS of the House education committee unveiled a bill on Tuesday that would trim up to $15-billion from the government's student-loan programs over the next five years. The reductions would meet the panel's obligations as part of a broader Congressional effort to reduce the federal budget deficit. -->
The new cuts are mostly more expensive consolidation and taking money from the direct-loan program.

* DIRECT LENDING TO COLLEGE STUDENTS has cost taxpayers more than originally forecast, but still, per loan, it has cost one-fifth of what guaranteed lending has over the past decade, according to a Government Accountability Office report released belatedly on Tuesday.
UPDATE: Here's the link to that GAO report.

1 comment:

Buckeye Beauford said...

Actually, the GAO report told everyone what was already known: that federal budget rules make it virtually impossible to accurately assess the cost of the student loan programs. It pretty much reinforces the fact that federal accounting rules that apply to student loan programs don’t capture the true costs of the Direct Lending program. I wish they did. I wish we knew it was cheaper because I would much rather spend student aid dollars on students than on bureaucracy. But that all aside...

...the reconciliation package does not reduce aid for students. Plain and simple.