Monday, July 16, 2007
Dispursed Student Loans
The publishing of a budget will invariably involve major public policy debates on taxes and spending. In last week's budget, a minor storm for a smaller audience of those studying, regulating and disbursing student loans resulted. The Office of Management and Budget came up with a definite answer to a long-standing debate on government-guaranteed student loans through subsidized private lending institutions in cost as against direct loans from the education department. The budget calculators are clear that the government-guaranteed loans are over 10 times more costly. For every $100 on student loans the US government pays subsidy of $12.09 on government-guaranteed loans and only $0.84 for direct loans.
# posted by karthika : 2:39 AM
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