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Texas Schools Brace For Big Changes In Student Loans
Texas colleges and universities are bracing for what could be the biggest change in college assistance programs in decades.
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AUSTIN (March 19, 2010)—Colleges and universities in Texas are preparing for what could be the biggest change in college assistance programs since Congress created the programs in the 1960s.
Changes proposed in Washington would mean federally guaranteed student loans only offered by the government, ending a role for banks and other for-profit lenders, which charge fees.
The Austin American-Statesman reported Friday that Texas universities are joining thousands across the country abandoning the bank-based system.
The University of Texas announced this week it is cutting the program under which students borrow from private lenders.
UT is opting instead for the U.S. Department of Education's William D. Ford Federal Direct Loan Program.
Starting this summer, students will borrow directly from the government.
Texas A&M also is making the switch.
Texas State University has offered the direct loan program since 1994.
