For one: It'll cut out origination fees.
Maybe small potatoes in scheme of, say, $150K+ in debt. But sounds good to me.
Also: Likely higher Pell grants. Index to inflation, as opposed to increase by congressional action.
At the same time, questionable whether the program will get expected savings, b/c many schools moving to govt as direct lender anyway
(I think Colorado, for one, does). From that story: "Instead of rising from the current $5,550 to $6,900 over the next decade -- as the House bill projects -- Harkin said the maximum annual award would rise to between $6,300 and $6,500."
And ... Here's what Obama said in SOTU:
"And let's tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years –- and forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college."
The 10-year forgiveness is already in place (see: IBR — public interest/government). The 20 years is a deviation from the current 25 years, I believe. Either way, I'm not sure whether this is in the healthcare compromise that student-loan reform will accompany.