For a few years after direct lending went into effect, it grew quickly.

The debate, however, is more than just whether institutions would be able to manage direct lending.

Many schools volunteered for the program, but the 104th congress passed legislation to prevent the switch to 100% direct lending in 1994.

That type of direct lending is uncommon, and has been declining in usage.

We believe there is too much risk involved in full and immediate implementation of direct lending.

While the Stafford is federal, only about 25 percent of this money represents direct lending from the government.

Studies have concluded that many of these techniques are far less risky than direct lending.

The changes would increase direct lending by the Federal Government and sharply curtail the role of commercial banks.

Their report said the Government overlooked administrative costs of direct lending or the cost of dismantling the current student loan program.

Unfortunately, direct lending has a troubled history in Congress.