June 13, 2003

Congressional Budget Office Questions Plan to Sell Student-Loan Assets

By STEPHEN BURD

The Congressional Budget Office has splashed cold water on a plan under consideration by the U.S. Department of Education to sell the $110-billion that the federal government holds in direct-student-loan assets and to use the proceeds to increase spending on financial aid or pay for some of President Bush's other priorities.

It would cost the federal government $3.3-billion to sell all of its direct-loan assets to other lenders, the budget office estimated. Under the Higher Education

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