Mainly because when administrative costs are high, funders tend to cut program budgets, specifically participant award amounts. Sending awards directly to participants necessitates more cumbersome accounting and administrative procedures with the attendant high administrative costs. We understand that sending awards to servicers gives program participants less flexibility than if they are paid directly; however, on balance we believe it is the still the best procedure despite its disadvantages. Fosterus wants to preserve LRAPs for the benefit of public servants. We are concerned that funders are reassessing whether it makes sense to fund these programs at all.
Student loan repayment assistance to encourage public service