DeVos Falsely Suggests That Student Loans Were Federalized to Pay for Obamacare

Clare McCann was quoted in the Chronicle of Higher Education on Secretary DeVos's misunderstanding of what happened when the Department of Education switched to direct student lending:

Clare McCann, deputy director for higher-education policy at New America, said it sounded like a “real misunderstanding” of what happened in the switch from the Federal Family Educational Loan program to direct lending.

...

“In a very technical sense, I suppose you could argue that the savings from the direct-loan switch helped to pay for some of the costs of Obamacare,” Ms. McCann said. However, “you would be hard-pressed to say that the switch from federally guaranteed loans to federally administered loans affected the control the federal government had in any real way.”