Describes the student loan default management plan of the Art Institutes. The plan includes a student financial plan worksheet, a student financial planner, and activities for students regarding their loan responsibilities. (JOW)

Discusses current bankruptcy law relating to the student loan debtor and outlines permissible activities of a university with respect to such a debtor during and after the bankruptcy proceeding. Advises universities to develop a set of guidelines and procedures for dealing with student loan debtors who file for bankruptcy relief. (MLF)

The four articles in this journal issue examine the pros and cons of the proposition that credit card rates are too high. In "How Congress and Consumers Will Crack the Credit Card Market," Congressman Charles E. Schumer argues that banks can get away with their excessive rates because of consumer misinformation and the unfair competitive edge held…

The Secretary of Education discusses the condition of postsecondary education in the United States. Focuses on student loan programs and the high default rate. Indicates that schools must work with the Department of Education to reduce the default rate. (JOW)

The Minnesota Supreme Court upheld a decision that student loan default, and subsequent dismissal through bankruptcy, is sufficient reason to deny a law student's bar admission. The bar's requirement of good moral character was interpreted as financial integrity in the Gahan case. (MSE)

This report describes progress in addressing problems identified earlier in the process of consolidating student loans under the William D. Ford Federal Direct Loan Program (FDLP) or the Federal Family Education Loan Program (FFELP). Consolidation loans allow borrowers to extend their repayment periods and may combine loans under either or both…

Provisions of the U.S. Bankruptcy Code that affect the right of colleges to withhold transcripts as a means of collecting student debts are considered. Automatic stay provisions state that the filing of a petition for bankruptcy relief prohibits actions to collect obligations of the debtor. The discharge injunction provides that once a discharge…

Perspectives on defaults occurring under the two major federal student loan programs, Guaranteed Student Loans (GSL) and National Direct Student Loans (NDSL), are presented. Attention is directed to differences in the size and mode of operation of these programs, the extent and costs of default, comparisons with other types of loans, and the…

Given the pressure for alternative uses of government funds, loans will continue to have a role in the student assistance program. The limitations inherent in their use and how best they may be coped with are explored. (MLW)

Student loans have become an essential ingredient of financial planning for college. The Guaranteed Student Loan Program's default rate is over 10 percent. World Bank and other international data suggest three solutions: longer repayment terms, graduated repayment schedules, and forgiveness for individuals choosing public service. (8 references)…

This article urges the financing of higher education by the Tuition Advance Fund, under which any undergraduate degree candidate is advanced money to pay for his or her education. The money is later repaid through a payroll-withholding tax administered by the Internal Revenue Service. It argues that such a plan would be an improvement in both…

Secretary of Education William J Bennett's use of for-profit schools as a metaphor for all student-loan collection problems threatens to reduce the financial options for low-income, educational at-risk youth. More grant aid is a better solution than additional barriers to student eligibility. (MSE)

Consists of background information on and an interview with United States Representative William D. Ford, a Democrat from Michigan. Topics discussed include private technical schools, public funding of training, high-risk students, the student loan default rate issue, and accountability. (CH)

Kansas Wesleyan University, the first postsecondary institution to experience a sudden federal crackdown on delinquent loans for dormitory construction, developed a seven-part plan of payment and alternative building use and learned some lessons about resolving such a situation. (MSE)

The Bankruptcy Reform Act specifically prohibits discharge of educational loans. This statutory exception is discussed and information is provided for lawyers handling loan collection. The anomalous situation created by the chapter that does not specifically discharge educational debt is also described. (MSE)