May 22, 2009

Congress Hears Arguments for and Against Bank-Based Lending

By Kelly Field

Washington

There were few surprises in Thursday’s Congressional hearing on the president’s plan to end the bank-based, guaranteed-loan program and shift all student lending to the government’s direct-loan program.

On one side were the Democrats, who argued that the plan would bring stability to a system that has been severely shaken by the credit crunch and free up billions of dollars for the Pell Grant program.

“We can either continue sending billions to banks and

Digital or Print Subscription

Web Pass

Already have an account? Log In Now.