April 2, 1999

Report Challenges Idea That Direct Lending Is Cheaper Than Guaranteed Program

By STEPHEN BURD

A government report released in March debunks the belief that the Direct Student Loan Program is cheaper for the government to run than the guaranteed-loan program.

The report, from the U.S. Education Department's Inspector General, does not contend that the guaranteed-loan program is cheaper. Instead, it says the costs of the two programs vary year by year, depending on the health of the economy.

"Changing economic conditions

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