The University of Oregon's financial aid director describes the success of the Federal Direct Student Loan program in its first year at the institution. No significant program disadvantages were experienced, and its advantages included flexibility of administration, ease of data management with the servicer, decrease in office workload, and…

The Federal Direct Student Loan Program is not an improvement over the Federal Family Education Loan Program and is doomed to fail as did a similar large-scale federal program 33 years ago. The program will not save money; the government is ill-equipped to manage it; it has been pushed past its demand; and schools do not want the change. (MSE)

In its third year, direct lending is working well for college students and administration. It is a simpler, faster, more efficient way of getting loan funds to students that cuts out financial middlemen. It helps students manage their finances better when repaying loans, promotes competition, stimulates program innovation, leads to greater…