May 9, 2010
With Direct Lending Ascendant, Student Loans Adjust to New Reality
Julie Turkewitz, Campus Progress
Students demonstrated on Capitol Hill in favor of the soon-to-be-passed legislation that has done away with bank-based student lending in favor of the government's direct-lending program.
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Julie Turkewitz, Campus Progress
Students demonstrated on Capitol Hill in favor of the soon-to-be-passed legislation that has done away with bank-based student lending in favor of the government's direct-lending program.
Washington
When President Obama proposed ending the bank-based student-loan program, a month after taking office, his advisers presented the plan as a done deal. The student-loan industry was "on life support," they said, a "middleman" whose time had passed.
Although the president had many factors in his favor, including Democratic control of Congress, the student-loan companies weren't about to go down without a fight. Led by Sallie Mae, they spent millions of dollars on lobbying and campaign
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