New William D. Ford Federal Direct Financing Program: A primary Financing Design (1992-Present)
Congress developed the William D. Ford Federal Lead Financing Program for the 1992 once the an effective pilot to attempt in the event it might be less and simpler to obtain the federal government disburse student loans by itself. 6 Rather than its guaranteed financing equivalent, the brand new Lead Financing program cut fully out the aid of 3rd-class personal loan providers and you may guaranty agencies altogether of the as an alternative getting the Institution from Education money financing straight to people from the United States Treasury. 7 It framework helps make the federal government the latest collector and you will collector of all of the levels, contracting only with personal entities or any other non-earnings communities to help service the fresh new fund. Continue reading « Why we Is always to Stick with Head Lending »