Lenders Are Avoiding Giving Loans to Low-Income Students

thenation.com — The federal student loan market is far from a free market enterprise. Lenders are given governmental subsidies to make the loan and stand to lose no more than 3 percent of the loan. So what are lenders doing with this governmentally subsidized money? Not putting it toward the neediest students who are most likely to require financial assistance in going to college, and also the most likely to drop out if faced with too many hurdles.

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