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...main event, Republicans seem to have all but ignored another part of the legislation that more precisely fits their rhetoric. In addition to securing the President a victory on health care, the House bill took him one step closer to delivering on a promise to reform the college-student-loan system. If a final piece of legislation before the Senate is approved, millions of students will get their federal loans directly from the Department of Education. In other words, the federal government would sweep aside private competitors in the biggest change to the federal student-loan program since its creation...

Author: /time Magazine | Title: Student Loans Get a Government Takeover | 4/5/2010 | See Source »

...where's all that outrage now? The thing is, the government already runs much of the student-loan industry. For decades under the Federal Family Education Loan (FFEL) program, the government has handed out subsidies to large banks and companies like Sallie Mae that lend money to student borrowers and collect it from them. In addition, the federal government has been obligated to cover up to 97% of any defaulted loan, effectively eliminating risk for lenders. Figuring that money could be saved by cutting out the middleman, Congress created the Direct Loan program - in which money goes from the Education...

Author: /time Magazine | Title: Student Loans Get a Government Takeover | 4/5/2010 | See Source »

...reason? Over the past 15 years, fees at Irish universities that cover the cost of registration, exams and student services have gone from the equivalent of $240 per student to nearly $2,000. On top of that, the government cut funding to universities by 5% last year, and Sullivan expects another 5% cut this year. "It's a time of famine," he says, adding that even though students don't show up in the country's grim unemployment rate (currently 13.1%), they have become the hidden victim of the recent financial crisis. "The last thing you eat is your seeds...

Author: /time Magazine | Title: Europe's Education Crisis: College Costs Soar | 4/4/2010 | See Source »

...Taxpayers are becoming increasingly aware of the high cost of France's higher-education system, which has little selectivity - virtually anyone who wants to study at a university can do so for about $540 per year. The government subsidizes the remaining cost per student, which can be as high as $16,160 per year. An increase in the number of students can also mask the growing unemployment problem in France, according to François Ameli, a professor of international law at Université Paris 1 Panthéon-Sorbonne. "The philosophy of France [on higher education] is a mass...

Author: /time Magazine | Title: Europe's Education Crisis: College Costs Soar | 4/4/2010 | See Source »

Chronic public-finance problems are forcing countries to consider alternative funding for universities. Britain, for instance, introduced tuition in 1998. Fees to attend state universities are now capped at $4,800, but university officials say government grants barely cover half of what it costs to teach an undergraduate student. In order to remain competitive with the university systems in the U.S., Canada and China, Christopher Patten, the chancellor of Oxford University, told the annual conference of the Independent Schools Council in London last month that British tuition fees must be increased. "I don't think it is realistic...

Author: /time Magazine | Title: Europe's Education Crisis: College Costs Soar | 4/4/2010 | See Source »

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