January 11, 2008

Treasury Report Adds Fuel to Loan Debate

By PAUL BASKEN

An annual Treasury Department report issued in December appears to show that the federal direct-loan program, in which the government lends money directly to students through their colleges, is not only cheaper than the more popular bank-based guaranteed-student-loan program but that it also returns money to the federal government.

Or, the report may be just another inconclusive set of numbers to be thrown onto the mounting heap of data used by both lenders and student advocates over

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