Reagan seeks $13.6 billion cut in US loan programs
The Reagan administration Sunday proposed sharp cuts in government credit programs for farmers, students, exporters, and prospective home buyers in a move designed to bring down interest rates. The proposal, which will be included in the budget package President Reagan unveils on Tuesday calls for a reduction of current fiscal year and another $21 billion in cuts in 1982.
Budget director David Stockman said the size of government loan programs had quadrupled over the past 12 years. This "explosive growth," he said, had produced record interest rates. Mr. Stockman said the Reagan administration was committed to reducing the government's share in the credit markets and returning it to pr ivate lenders.