The Education Department’s Office of Inspector General has released a report that evaluates the department’s capacity for handling increased volume in the federal direct-loan program. The inspector general found that the department appeared to have access to sufficient resources to assist colleges in making a transition to direct lending from the federal bank-based loan program, which President Obama and Congressional Democrats propose to eliminate. The report says that the department will have to put in place effective systems for monitoring contractors, on which it is expected to rely heavily to ensure effective operations of the direct-loan program if participation in that system increases.
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One Response to Education Dept. Has the Resources to Help Colleges Adopt Direct Lending, Report Says
tenaceus - December 1, 2009 at 2:56 pm
The real problem here is the manufacture of costly courses by colleges that incur student loand debt…to their advantage! Management and disciplines of colleges by the government should remember why educational institutions are non-profit, why the tax payers are paying for them, and defend American citizens being pludered by a runaway system that profits colleges, banks, and market-driven text book makers –even before we call for a verdict on the MBA paradigms that brought America to the brink…