Big changes to how student loans will take place July 1, and while the students themselves arent likely to notice much, taxpayers stand to save $68 billion over the next 11 years.The changes — part of the health care reform legislation passed by Congress in March — moves all taxpayer-backed college loans for students to the Department of Education and away from private banks.
Susan Fischer, director of financial aid and the University of Wisconsin in Madison, said that the school has made the changes to its computer system to handle the direct loan switch. They also have a big push to tell their students that they need to sign a new loan document promising that they will repay the balance.