President Bill Clinton set a phase - in of direct lending , by signing into law the Omnibus Budget Reconciliation Act of 1993 .
In 1994 the 104th Congress passed legislation to prevent the switch to 100 % direct lending .
President Bill Clinton set a phase - in of direct lending , by signing into law the Omnibus Budget Reconciliation Act of 1993 , although in 1994 the 104th Congress passed legislation to prevent the switch to 100 % direct lending .