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This makes no sense at all. Under the Federal Family Education Loan program, the student borrowed from a bank, and the university was paid right away. The gover
by massysett 4y ago
This makes no sense at all. Under the Federal Family Education Loan program, the student borrowed from a bank, and the university was paid right away. The government paid the bank in case of default.
Under the William D Ford Federal Direct Loan program, the student borrows from the government. The university is paid right away.
So this post’s argument, which is that the Direct Loan program made universities get paid right away, makes no sense.
- ribosometronome 4y agoYeah, it feels like the author forgot a paragraph then explaining why this switch caused the increase. It's not clear why having a private lender between the gov and schools would keep costs down if the gov is ultimately on the hook for the money either way.
- nappy 4y agoIt seems like the author must think that the private lenders were the schools themselves? Otherwise, I agree, this doesn't make sense at all.