NWjobs | NWautos | NWhomes | NWapartments | NWsource | Classifieds | seattletimes. Almost all the money will be plowed back into grants for the poorest students, lower interest rates and loan forgiveness for those in careers that society values but underpays. Kevin Bruns, executive director of America’s Student Loan Providers, predicts less service, rising defaults and lenders dropping out of the loan program. Some lenders will start eliminating borrower discounts next month when the subsidy cuts kick in, making loans more expensive for students, he says. Kantrowitz figures the typical student with $10,000 in subsidized loans will save $1,000 in interest over the life of the loans. Students whose schools weren’t in the direct-lending program still can be eligible for forgiveness by consolidating their loans through the direct-lending program. read more