Deficit-Cutting Proposal Revives Debate Over In-School Interest Subsidy on Student Loans

In the long list of potential cuts put forth this month by the leaders of the president's deficit-reduction commission is a proposal that college lobbyists have defeated several times before: ending the interest subsidy paid on certain federal student loans while the borrowers are in college.

The in-school interest subsidy has been called bad public policy, an inefficient use of taxpayer dollars, and a handout for students who will command healthy salaries after graduation. But each