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MPR looks at new 'direct lending' process at St. Olaf

By David Gonnerman '90
August 10, 2009

Minnesota Public Radio's Tim Post reports that a change to the student lending process proposed by President Obama would take private banks out of the business of handling federally guaranteed student loans. "His proposal would end billions of dollars in subsidies to private banks to service those loans, and instead put that money into college funding and grants to students."

Post spoke with Kathy Ruby, assistant vice president for enrollment and dean of student financial aid at St. Olaf, where the college is making the change to direct lending and handing federal money directly to the student.

"For students or parents it's a little simpler because they don't have to choose a lender," says Ruby.

Contact David Gonnerman at 507-786-3315 or gonnermd@stolaf.edu.