1958 to Present: Follow the Money

Federal Student Loan Program Timeline

1958

First federal student loan program established by the National Defense Education Act. Loans are direct loans capitalized by U.S. Treasury funds.

1965

Government established new student loan program provided through loan guarantees.

1990

Federal Credit Reform Act adopted. Requires subsidy estimates for all federal loans, guaranteed and direct.

1992

Direct lending pilot program created

1993

Legislation passed to phase in direct lending.

1994

Department of Education barred from encouraging or requiring colleges to switch to Direct Loans. As a result, Direct Loans' share of new student loans begins decreasing.

2007

Direct Loans hit lowest share of all new student loans since the second year of the program

2008

Credit market disruptions cause schools to switch to Direct Loans, and Direct Loan volume as a share of federal student loan volume increases.

2009

President Obama proposes eliminating the FFEL program. All federal student loans would be made as Direct Loans.

2010

Legislation enacted eliminating the FFEL program. All new federal student loans as of July 2010 have been made as Direct Loans.

Comment! It's anonymous!

7 replies (most recent on top)

@642, it sounds like you have known how to defraud taxpayers for some time. Congratulations! Sounds like you have earned tenure in Student Finance. Nice!

868: And what exactly is your problem with Direct Loans? It sounds like you long for the days of Sallie Mae, conveniently misplacing loan deferments apps so they could default students and pick up their big payday from the taxpayers. You have obviously never worked in financial aid and know absolutely NOTHING about it. What an ignoramus!

Sorry, Lemming362 I can't help you if you can't read. Or count. Or follow a series of historic events. Just follow the rest of your kind over the cliff........

Anonymous71868: Repeating history? What in the hell are you rambling about now, you ignorant little freak? Are you saying that it was some kind of disaster to start offering financial aid to help people attend college. That it should be unlimited free money and no loans? What are you even trying to say, dumbass?

751 and 759, you seem to be perfectly satisfied with repeating history, as you have no desire to understand it and belittle those who do. Just because you watch TMZ, Maury. Springer, and don't know the pledge of allegiance doesn't mean you have to settle into a life of ignorance. Unless you are just too entirely comfy as a lemming - if that's true, by all means, run Forrest run!

The crazies are out today alright. OP - take a chill pill. It's Friday, time to wind it down for a bit.

Oh, for Christ sakes! Camden Kid - is this you rambling again?!? WHY are you here? We all work in education, we KNOW what Direct Loans are! What could even possibly be the point of your bizarre cut and paste job above?

Thread regarding Corinthian Colleges Inc. layoffs

1958 to Present: Follow the Money

7 replies (most recent on top)

Post a reply