Subsidized College Loans Under Fire In Congress

npr.org — With Congress back from a two-week break, lobbyists of all stripes will be going to work on President Obama's proposal to do away with federal subsidies for privately sourced student loans. Whatever happens now will not affect college loans for next fall. But in the longer term, the question is whether Washington ought to keep on subsidizing the private loans, something it has done since 1965. The government spends three times more on the subsidies than on direct loans to students. President Obama wants to keep the direct loans going and pump up the Pell Grants — payments directly to students.

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