Over the last 3 decades, the Direct Loan program has grown in size and complexity, with over $1.3 trillion in outstanding loans as of September 2023. This program provides financial assistance to help students and their parents pay for postsecondary education. The Government Accountability Office (GAO) was asked to review issues related to…

Today, institutions of higher education may charge whatever they wish for the education they provide, and the government provides the capital for student's tuition through loans without institutions bearing any meaningful risk if students do not repay. Naturally, this drives up costs and borrowing. On top of tuition and fees, students can borrow…

Today, costs loom large in public discussions about the problems in higher education. That's no wonder. Tuition at four-year private colleges has grown at an average annual rate of 2.3% above inflation over the past 10 years. Four-year public and two-year institutions have seen similar trends, with tuition growing at an annual rate of 3.1% and…

The federal government's Direct Loan program dominates the student-loan market today, issuing 90 percent of all loans made across the country each year. Students pursuing everything from short-term certificates to master's degrees qualify for nearly $100 billion in loans every year at terms more generous than most private lenders would offer.…

When borrowers default on a federal student loan, it can have catastrophic consequences. Their credit scores drop dramatically, severely curtailing their ability to afford a home or a car, and even limiting their ability to sign up for utilities. The cost of their loan rises as late fees pile up. Moreover, the federal government can garnish…

Objective: The purpose of this study was to understand how community college students assess the risks and rewards of using personal loans to achieve their higher education goals. Method: Interviews were conducted with 12 federal loan borrowers attending a large, urban community college in Texas during the Spring 2013 semester. Results: Findings…