Nearly All Colleges Are Moving Toward Direct Lending, Department Says

The yearlong deliberation in Congress over whether to end the bank-based system of distributing federally subsidized student loans may be getting largely resolved on its own. According to new figures from the U.S. Education Department, colleges that account for 96 percent of all federal student loans are now either currently participating in the department’s direct-lending system or “actively taking steps to prepare to participate in” the program.

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