Colleges looking to help students in a financial squeeze are increasingly turning to the federal government for support. From NPR:
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For decades, the federal student loan program has paid private lenders and banks a subsidy for loans they make to college students. But the Obama administration wants to bypass banks and have the federal government lend the money directly to students.
Because of last year’s student loan crisis, some schools have already switched to direct lending. And consumer banks are not happy about it.
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