February 5, 2008

Figures Reopen Debate Over Which Loan Program Costs More

By Kelly Field

Washington

It's official—sort of. For the first time since it was created in 1993, the direct-student-loan program is poised to cost the federal government more than the bank-based guaranteed-loan program.

At least that's according to President Bush's budget for the 2009 fiscal year, which puts the government's projected cost per dollar loaned at 2.58 cents for guaranteed loans and 2.64 cents for direct loans.

But as with all comparisons of the rival programs, the

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