This hearing before the Committee on Banking, Housing, and Urban Affairs, addresses the implications of the anticipated failure of the Higher Education Assistance Foundation (HEAF), the largest guarantor of student loans. HEAF's difficulties have affected Sallie Mae (Student Loan Marketing Association), and have raised general questions about the…

Proposals for the amendment or elimination of the in-school interest subsidy for the Guaranteed Student Loan (GSL) program were evaluated. The proposals were assessed in terms of their effects on the administrative and operational aspects of the GSL program, the availability of loan capital, and their impact on borrowers' ability to meet their…

Four aspects of the Guaranteed Student Loan (GSL) Program are compared with credit policies on other loans made by consumer installment lenders. The four aspects are: (1) the planning, screening, monitoring, collecting, and write-off policies on GSLs versus uninsured loans; (2) the importance of the Student Loan Marketing Association in providing…

The special allowance component of the Guaranteed Student Loan (GSL) program was evaluated through research and hearings. Attention was directed to: the experiences of students and eligible lenders; the administrative costs of various types of eligible lenders; financial indicators that accurately reflect the costs of capital; and administrative…