Clinton Offers New Incentives for Borrowers in Direct Lending

President Clinton last week announced incentives for borrowers in the direct student-loan program that would reward those who make on-time payments and those who consolidate their loans with the program.

Supporters of direct lending praised the president for easing the repayment burden for students at colleges that participate in the program, in which the federal government provides loan funds directly to colleges. But private lenders, who compete for