Lawmakers criticized the Education Department's direct student loan program at a hearing Thursday and suggested that returning the loans to the private sector might save taxpayers money.

"This kind of poor management not only hurts the taxpayer, but ultimately takes away funding from other eligible students," Rep. John Mica, R-Fla., said.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

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