The federal government could save about one third by making student loans directly instead of guaranteeing them, according to the General Accounting Office.

Direct loans would cost the government $9.73 billion over five years, the GAO said, while guaranteeing the same loans could cost $14.55 billion.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.