[The following is a November 10 press release from the National Direct Student Loan Coalition.]
Washington, DC - Today, the National Direct Student Loan Coalition (NDSLC) is unveiling a new tool that for the first time will allow the public to easily see how much government savings each Direct Loan school is generating by participating in the federal government's more affordable student loan program.
The NDSLC has displayed these savings in a flash animated map of the United States with the latest information for schools that participate in direct lending, including the gross commits per school and state, and the 11% savings per school and state.[1]
The savings projected in this map are based on figures provided by the President's FY 2006 budget announcement, which states that student loans made through the Federal Family Education Loan Program (FFELP) cost the federal government nearly $11 more for every $100 lent than the same loans made through the Direct Loan program. President Bush's budget reinforces the findings of the Government Accountability Office, the Congressional Budget Office, and the Office of Management and Budget over the last 10 years: that the Direct Loan program saves billions of dollars a year, as compared with FFELP. Many independent research organizations, including the Center on Federal Financial Institutions in their latest report, also support this cost differential between the Direct Loan program and FFELP.
The NDSLC's flash animated map is the first resource of its kind and will serve as a valuable tool for lawmakers as they work to identify additional funds for America's neediest students. The map shows that the current direct lending institutions are saving the government over $1.3 billion dollars per year a readily available funding source that if Congress chooses to, can help many more low income students gain access to a higher education at no additional cost to taxpayers. In light of proposed cuts to student loans in Congress through the reauthorization of the Higher Education Act and budget reconciliation, this may be the best chance for increased federal grant aid to neediest students for at least the next decade. The map can be viewed by clicking here.
[1]The figures used for this map are the latest available from the Department of Education, representing DL participants in the 2003-2004 fiscal year and utilizing federal Office of Management and Budget cost figures.
Posted November 14, 2005 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
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