July 13, 2009

Some Small Colleges Worry About the Cost of Carrying Out Obama's Loan Proposal

Some Small Colleges Worry About the Cost of Carrying Out Obama's Loan Proposal 1

Photograph by Corey Wascinski

Staff members in Adelphi U.'s financial-aid office rely on software that processes loans issued through the guaranteed-loan program. The software is not compatible with direct loans.

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close Some Small Colleges Worry About the Cost of Carrying Out Obama's Loan Proposal 1

Photograph by Corey Wascinski

Staff members in Adelphi U.'s financial-aid office rely on software that processes loans issued through the guaranteed-loan program. The software is not compatible with direct loans.

By Austin Wright

Washington

Sheryl Mihopulos, director of financial services and financial-aid compliance at Adelphi University, worries that her office will soon have to shift resources away from what she considers its most important duty: helping students and parents navigate the complex aid options.

If Congress adopts President Obama's plan to end the bank-based, federal guaranteed-loan program and move all colleges to the government's direct-lending program by the 2010-11 academic year, Ms.

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