TO THE EDITOR: THE NORTHFIELD NEWS THE VERMONT Student Assistance Corporation has been fighting a proposal to shift responsibility for education lending in Vermont from a local service-delivery model to one that is centralized at the federal level.

“Direct lending” by the government would force VSAC to slash or eliminate important programs — everything from college savings to counseling for low-income students to statewide career development services to helping Vermonters finance education or training beyond high school.

Proponents claim direct lending will save billions, and have fostered the notion that it will reduce students’ costs. In fact, here’s what the proposal will do:

• Federal Pell grants for needy students will go up, but by smaller annual amounts ($200) than Congress has approved the past few years without the legislation.

• The neediest undergrads will be spared a planned interest rate hike on their federal education loans, but other undergrads, grad students, and parents will continue to pay above-market interest rates.

• Instead of funneling all savings into higher Pell grants or reduced loan rates, some will go toward deficit reduction and initiatives outside higher education — effectively perpetuating a system in which student and parent borrowers pay more than necessary in order to subsidize other federal goals.

• Private, for-profit loan servicers and their Wall Street investors will be the big winners. The government currently contracts with the biggest for-profits in the business — including companies that use offshore labor and are under investigation for their financial practices — to provide bare-bones direct loan servicing.

VSAC has vigorously sought to modify this legislation because it’s a terrible deal for Vermonters and disregards the many valuable services nonprofits like VSAC provide.

VSAC communicated with our customers and invited their feedback on this proposal. We had anticipated receiving a handful of responses, only to discover that Vermonters had strong feelings about the plan and were eager to be heard. To date, we have received 1,147 e-mails and letters, only 34 of which supported direct lending or found fault with our service delivery. We recently turned over all responses to Vermont’s congressional delegation.

Our research staff analyzed the messages to distill responses into key themes. Here are the top five, in descending order:

Real person, real solutions. We live in an age in which the public is increasingly frustrated by automated phone queues, excessive holdtimes, marginally trained call-center staff, and miles of red tape. In contrast, our customers express great relief that when they contact VSAC with a question or problem, they reach a real person who can provide a workable solution.

Portal to services. VSAC is perceived not only as a source of education loan information but a nexus of information about grants, scholarships, postsecondary education, and career choices. Our customers like this bundle, viewing VSAC as an efficient and highly desirable model for the nation.

Trusted expertise. Parents and students need information to make the right decisions for their own situations. Vermonters trust VSAC to provide information that is current and credible, and is communicated with their best interests in mind.

Partner in a key investment. Vermonters see postsecondary education as one of the most important investments they will make in their lifetimes. In addition to seeking competitive loan rates, Vermonters want the value-added services VSAC provides — at the front end of the career and college planning process and for protection in the event that job loss, illness, or another unforeseen situation interferes with loan repayment.

Small, local, and not-for-profit. VSAC customers want to work with someone who understands their communities, can refer them elsewhere if needed, and has the willingness and ability to make accommodations when unexpected situations arise.

Make no mistake: Under direct lending, the government will continue paying someone to service federal education loans. The choice facing Vermont is whether that servicing will remain local, easy to reach, and enhanced by other programs, or whether it will be far away, less personal, and severely limited in scope.

VSAC’s customers have spoken loudly and clearly on the subject. Now, the decision rests with our nation’s elected leaders in Washington.

DONALD VICKERS CEO, President, VSAC