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President Obama has noted that it ends up costing taxpayers far more to make use of this middleman process versus just making direct loans to students. Some estimates place the cost of lenders at roughly $9 per $100 loaned versus a associated with less than $2 per $100 lent with direct loans. Using this in mind, President Obama wants to get rid of subsidies to lenders and reconfigure the scenario several situation where loans are made directly to students.

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