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Education & Labor Committee Republicans

Contact: Press Office (202) 226-9440
Congressional Leaders Seek Oversight on Direct Loan Program




Dear Mr. Dodaro:

On July 1, 2010, the Federal Family Education Loan (FFEL) program was eliminated and replaced by 100 percent direct lending. Since 1965, the FFEL program leveraged hundreds of billions of dollars in private sector capital to help Americans pay for college. However, with the elimination of FFEL, the government now originates and oversees every single new federal higher education loan in the country.

During debate on the measure, Republicans expressed concerns about the department's capacity to originate, service, and collect on all federal student loans. In testimony provided to the Committee on Education and the Workforce's Subcommittee on Higher Education and Workforce Training, administration officials repeatedly insisted the department is capable of handling all federal student loans.

To read the full letter, click here.

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