Direct Loan Program Not For Every College, University

Michelle Krajnik balks at any talk of requiring colleges and universities to participate in the direct student loan program.

?On the surface, it sounds fabulous, but it is incredibly labor intensive. Everything that goes into issuing a loan lies with the college,? said Krajnik, director of student financial aid at Silver Lake College. ?If you have the personnel and technical resources, it can be great, but many of us don?t enjoy those resources to benefit from it.?

Reps. Tom Petri, R-Wis., and George Miller, D-Calif., and Sen. Ted Kennedy, D-Mass., plan to reintroduce legislation this year that would entice more colleges and universities to opt into the direct loan program by funneling the savings back to the schools. Colleges would be required to use the additional money for enhanced Pell grants for low-income students.

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