ASLP: Guaranteed Student Loans Cost Taxpayers Less
Federal guaranteed student loans have cost taxpayers less than loans made directly by the U.S. government, according to a white paper issued by America’s Student Loan Providers (ASLP). Based on new government cost data, loans made by the private sector-based Federal Family Education Loan (FFEL) Program from 1994 to 2002 have cost $7.00 for every $100 in loans, as compared to $9.16 for direct loans.
ASLP Survey of Schools That Have Left the Direct Loan Program
America’s Student Loan Providers (ASLP) has issued the results of a survey of schools that have left the Direct Loan program and returned to the private-sector Federal Family Education Loan (FFEL) program. The ASLP survey, conducted by Rockbridge Associates, Inc., polled financial aid administrators (FAAs) at former Direct Loan schools to determine why more than 500 schools have left the Direct Loan program for the FFEL program.
ASLP White Paper on the Cost of the FFELP and the Direct Loan Program
For the first time, ASLP has put a dollar figure on the impact of flaws in federal budget rules on student loan program cost estimates, concluding that no significant difference exists between the Federal Family Education Loan (FFEL) Program’s costs to taxpayers and the Federal Direct Loan Program’s.
Who is ASLP?
Learn who belongs to ASLP and why our members support the FFELP
Overview of the Federal Student Loan Program
Learn about the different federally guaranteed student loan programs
The Federal Family Education Loan Program (FFELP)
Overview of the Federal Family Education Loan Program
Learn how the private sector student loan program makes higher education affordable and accessible for millions of students and their families.
Loans made under the FFELP
Learn about the different loan products offered by FFELP participants.
What is a loan guarantee agency?
Learn about the important role loan guarantee agencies play in the FFELP.
Cost the Federal Family Education Loan Program
See how the cost of the FFELP has declined since FY 1997.
Comparison of the Federal Family Education Loan Program and the Federal Direct Loan Program
Learn the key differences between the two principle Federal student loan programs.
The Federal Direct Loan Program
Performance of the Federal Direct Loan Program
See how the Direct Loan Program has collected less in interest and fees that it has paid the government in interest every year since 1997
Fact sheet about the Federal Direct Loan Program’s budget “savings”
Learn why the Direct Loan Program has not saved taxpayers money.
Why the budget scores “savings” for the Federal Direct Loan Program
The federal budget scores “savings” for the Direct Loan Program. Learn why these budget savings are illusory and how the program has spent more than $11 billion than it has received in interest payments.
Other Issues
ASLP Issues Brief on the STAR Act
America’s Student Loan Providers supports increases in federal need-based aid. However, we oppose approaches like the Student Aid Reward Act because the formula the government uses to measure program costs (and "savings") is fundamentally flawed. The bill would also be unfair to millions of students.