Analysis of the income-contingent repayment mechanism of the federal direct lending program suggests that it will be considerably more expensive than other repayment options in total interest costs for many; lead to hefty tax liabilities for some; be administratively cumbersome, vulnerable to fraud and abuse, and costly to taxpayers; and invite…

It is argued that rising costs and declining federal student loan programs highlight the key role of the in-school interest subsidy in educational finance. Six possible scenarios are outlined, each differentially balancing indirect/direct lending and government/private involvement. Professionals are urged to find a program that serves students, is…

A study investigated the effects of changes in institutional aid strategies on student persistence, exploring the implications of increased reliance on loans at a private university. Increases in grants and loans appeared to improve student persistence. However, students' increased loan burden should be considered. The study also suggests that new…