CHART: Sweet Subsidy

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The federal government guarantees lenders a yield of 9.5 percent for certain student loans financed with tax-exempt bonds issued before Oct. 1, 1993. Payments based on the guarantee have skyrocketed in the past few years:

Student Loan Guarantees

*2004 data are for the first three quarters.
SOURCE: U.S. Department of Education

Vol. 24, Issue 07, Page 29

Published in Print: October 13, 2004, as Sweet Subsidy
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