CHART: Sweet Subsidy
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:
*2004 data are for the first three quarters.
SOURCE: U.S. Department of Education
Vol. 24, Issue 07, Page 29Published in Print: October 13, 2004, as Sweet Subsidy