Income-contingent student loans are examined in the context of an overall aid program, with an emphasis on placing realistic limits on individual debt burden while broadening loan use. A model for simulating borrowing and cumulative debt limits in different countries' educational circumstances is presented and illustrated with United States data.…

The question of a balance in the supporting roles of students and families, governments, and institutions in college financing is discussed. In the context of that analysis, the question is then whether the current student aid system is the most cost-effective and fair way of meeting national needs. (MLW)

An analysis was conducted of the Alaska Student Loan Program (ASLP), especially as it was used for borrowing for short-term training at vocational schools. An immediate effect of the ASLP program was a rapid increase in the number of postsecondary institutions (primarily vocational schools); the peak number of borrowers was reached in 1985, and…

This report discusses problems reported by lenders participating in the Federal Direct Loan Program (FDLP) and the Federal Family Education Loan Program (FFELP). The study examined the nature and the source of the problems experienced by the lenders, how they affected lenders, and what steps the Department of Education and Electronic Data Systems…

Default on guaranteed student loans has been increasing. The use of discriminant analysis as a technique to identify "good" v "bad" student loans based on information available from the loan application is discussed. Research to test the ability of models to such predictions is reported. (Author/MLW)

Analysis of the income-contingent repayment mechanism of the federal direct lending program suggests that it will be considerably more expensive than other repayment options in total interest costs for many; lead to hefty tax liabilities for some; be administratively cumbersome, vulnerable to fraud and abuse, and costly to taxpayers; and invite…

In a Texas study of vocational education student loan repayment attitudes, interviews with loan recipients indicate defaults are affected by how much students are pressured to enroll in a program, their understanding of the loan program when signing an application, and how well their vocational education equips them for employment. (Author/MSE)

Summarizes prior studies with a focus on untangling how changes in student financial aid policy have influenced changes in opportunity. Also recommends new strategies for lowering student loan debt, increasing federal and state cooperation in providing adequate need-based grant aid, and developing policies that target debt forgiveness for…

This document reflects Federal Student Aid's solid progress in meeting strategic objectives since becoming a Performance-Based Organization. Specifically, the plan addresses continuing efforts to increase program integrity, improve customer service and achieve measurable results in the management and administration of the Title IV student…

The purpose of this hearing was to probe a pattern of fraud and abuse in the Pell Grant Program for postsecondary students, focusing specifically on the IADE American Schools, a for-profit vocational school with campuses in the Los Angeles (California) area and serving primarily Hispanic students. In his opening remarks Senator Roth detailed a…

This hearing document presents testimony comprising prepared statements and letters that address the direct loan concept (as authored by Senators Simon and Durenberger) in student financial aid, and the idea of tying repayment to income (income-contingent loan) as a means of simplifying the nation's guaranteed student loan process. Testimony…

This report presents testimony, along with prepared letters, statements, and supplemental materials, submitted before a House congressional hearing concerned with the reauthorization of the Higher Education Act of 1965 in general, and the integrity and quality of grant and loan assistance for students in particular. The testimony and statements…

This testimony before the House Subcommittee on Postsecondary Education addresses the need for improving student financial aid programs administered by the Department of Education, and in particular, the Stafford Student Loan Programs. The testimony begins with a brief review of the default problems involving student loans. Next, an examination is…

Information is presented on student default rates at 7,800 postsecondary schools. The report builds on previous data and offers a summary analysis of the approximately 1.2 million 1983 borrowers' rates of default by kinds of schools that borrowers and defaulters attended and length in years of their schools' academic programs. Information is…

Background and legal requirements for disclosure and counseling of students receiving loans under the federal student loan programs are discussed. A definition of loan counseling, a decision-making model for creating an institutional program, and information on loan consolidation are provided. Following introductory and background sections, the…