Student aid, linked to health care, gets a trim

“Switching from the FFEL student loan program to direct lending by itself will reduce, not increase, the deficit,” the group said. “Members of Congress who defend FFEL are acting to increase the deficit.”

SAFRA seemed to be on the verge of passing last fall when Duncan sent a letter to 3,500 colleges and universities in October, urging them to “ensure uninterrupted access to federal student loans by ensuring your institution is direct loan-ready for the 2010-11 academic year.” Since then, more college leaders have moved to a direct-lending model.

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