Direct loan programs by the Government amount to a total of $218 billion.

Direct loans offer a more efficient way of doing business than the old loan program.

The direct loan system, developed under the Clinton administration, allows students to borrow from the government through their schools.

The discount rate is what the central bank charges for direct loans to banks.

There are two types of programs involved, direct loans and loan guarantees.

It helped push back the direct loan business, which many people believe offers taxpayers a much better deal.

Direct loans now total about 30 percent of all student loans.

With direct loans, the government can ensure the lowest costs for taxpayers and students.

Despite a great deal of confusion and misunderstanding, the federal government generally does not make direct loans under the act.

Direct loans to students provide more opportunities to future generations than do subsidies to banks.

Community Programs can also make direct loans to applicants who are unable to obtain commercial credit.

As a result, they said, Congress may be more willing to replace loan guarantees with direct loans to students.

The direct loan program, which is entirely financed by the Government, benefits the most needy students.

Federal financial aid is available in the form of Pell grants, work study programs and direct loans.

In contrast, Direct Loans are distributed directly from the federal government to students.

The companies have offered money to universities to pull out of the federal direct loan program, which was championed by the Clinton administration.

However, direct loans to limited resource borrowers can be made at significantly below the federal cost of funds.

Direct loans are now about a third of all loans and their percentage is increasing.

But neither direct loans nor loan guarantees are free.

Lenders vehemently argue that the direct loan program is in fact more expensive.

The rate offered through the Direct Loan Program will be 7.9%.

The new budget calls for $500 million of direct loans, down from $612 million authorized in the current fiscal year.

In the last year of the Carter Administration direct loans totaled $5.5 billion.

Guaranteed loans may be made in combination with direct loans.

Under current law, new farmers must have three years of farm management experience to get these direct loans to buy farm land.