STATEMENT BY THE PRESIDENT ON DIRECT COLLEGE LOANS
The White House
Office of the Press Secretary
November 30, 1994
Today the Department of Education announced that its new direct
lending program has reached the congressionally mandated benchmark of 40
percent in new loan volume for the next academic year. A total of 1,495
schools will participate in this new program. The program will provide
$8 billion in loans to two million students in the next school year.
The American people want a federal government that works better,
costs less, and expands opportunities for all Americans. The new direct
lending program is an important example of reinventing government to
better meet the people's needs.
It will reduce complexity and costs for millions of student
borrowers. And the option to repay loans as a percentage of income over
time will reduce burdens on young families and make it easier for young
people to serve their communities and their country.
The new direct lending program is good news for taxpayers as well.
Financial analysts in a recent Morgan Stanley newsletter have already
described this new program as a "budgetary winner" that will "lower
government spending and reduce the deficit." Over the long term, we
expect to save taxpayers $4.3 billion once this program is fully up and
running. Direct lending represents the most innovative student
financial aid program since the creation of the Pell Grant program in
1973, more than 20 years ago.
Government can work better, cost less, and direct lending proves
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