Editorials
Most vitally, this bill will retool the federal student loan system. Right now, taxpayers subsidize student loans made by private moneylenders, who are subject to the rise and fall of the market. If the bill passes the Senate, all federal lending will come from the Direct Loan program, in which the federal government lends directly to the student and cuts out the unnecessary middleman. By overhauling this over-complicated system, the government stands to save $87 billion, according to the Congressional Budget Office.
By
the Editorial Board
September 23, 2009