February 14, 2003

Education Dept. Considers Selling Direct-Lending Assets

By STEPHEN BURD

Officials at the U.S. Education Department are strongly considering a plan to sell a portion of the $100-billion that the federal government holds in direct-student-loan assets and to use the proceeds to boost spending on financial aid or to finance some of President Bush's other education priorities. Such a move would be extremely controversial with supporters of direct lending, who fear it could harm borrowers and ultimately lead to the dismantling of the loan program.

William D.

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