President Obama’s 2010 budget proposal contained a bold new proposal to switch away from the unreliable, wasteful, and corrupt Federal Family Education Loan Program to the cheaper and more stable Direct Loan Program.

These two loan systems provide the same federal loans for students, but using only the DLP, where the government loans directly to students rather than garunteeing loans made by private companies against default, will save an estimated $94 billion over ten years. These funds can be used to increase need-based student aid.

Our friends at the New America Foundation had a great event about this issue today. Check it out: