The federal direct student loan program wastes millions of dollars in taxpayers' money, according to a new report by the U.S. Department of Education's inspector general. Satisfaction rate among schools for the federal program is also low - 71 percent for the federal program compared to 84 percent for private loans. The federal direct student loan program was begun by the Clinton Adminstration in the early 1990s in order to reduce ways that private lenders could gain money at the expense of taxpayers and the public. Unfortunately, the opposite has happened and there appears to be no end in sight. The Education Department has requested a 17 percent increase in funding for the federal direct loan program.
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