This paper provides recommendations for the development, implementation, and evaluation of a demonstration program designed to assess direct lending as a replacement for the current federal student loan program. It offers a list of principles which the demonstration project should address. Recommendations include: (1) maintenance of student…

As part of a larger program to identify and analyze federal programs at high risk for waste, fraud, abuse and mismanagement, this publication presents an evaluation of the Federal Family Education Loan Program (FFELP), formerly the Guaranteed Student Loan Program. The analysis argues that the program has not been successful in protecting 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…

The hearing was held to examine H.R. 2544, the Public Service Education Assistance Act of 1989, which provides Federal agencies the flexibility to pay or reimburse employees for degree training in critical skills occupations and authorizes agencies to pay all or part of student loan debt for certain Federal employees. The bill is designed to…

The extent to which educational debt is burdensome for borrowers who are currently in repayment was studied with attention to the actual impact of loan repayment on economic behavior and the perceptions of repayers concerning that impact. Opinions of borrowers concerning the role of student loans in providing access to and choice among higher…

A summary of the information presented at a May 31, 1988 meeting between the staff members of the Subcommittee on Postsecondary Education and the General Accounting Office (GAO) is provided. The information represents preliminary results of the GAO analysis of the characteristics of borrowers and defaulters in the Guaranteed Student Loan (GSL)…

Problems and concerns faced by the Carter Administration and the Congress regarding federal student loans are reviewed in this book. In individually authored chapters, focus is on student default, abuse, availability of capital, student access to loans, and possible new roles for states, institutions, and the federal government. A historical…

The financial aspects of college loan burden are analyzed, based on the view that loan burden is a function of a borrower's capacity to repay the debt obligation. The following components of a financial model of indebtness are addressed: the stock of education loans at the time repayment begins, the repayment flow associated with each stock of…

Results of a Government Accounting Office review of the administration of the National Direct Student Loan (NDSL) program by the Office of Education and participating universities is provided. Problems found concerned the need to: (1) provide program guidance at institutions so they can promptly and effectively implement established requirements…

The problem of managing collection efforts on defaulted student loans under the guaranteed student loan program is discussed. This review was made to assist the Office of Education in developing collection guidelines and procedures to cope more effectively with the rapidly increasing backlog of defaulted loans. It is shown that changes in policy…

A study to examine the repayment of Guaranteed Student Loans is described. It found that most of the institutions with more than 60 percent of their student loans in default are proprietary schools. The study is aimed at helping state and federal policymakers make decisions on student-aid programs. (MLW)

A discussion of the problem of student loan defaults places the issue in the context of loan program history and current federal policy. It argues that the situation is more complex than some public officials admit, and that short-term solutions will not effectively address the long-term problem. (MSE)

Officials on 10 campuses that are testing the new income contingent loans say that borrowers don't understand how it works, and they predict that students would not like the new loans because the interest rates are so high that it could take a life-time to pay the money back. (MLW)

An alternative system is proposed for college students: provide grants in the freshman year, reduce grants and small loans in the second, introduce work-study in the third along with reduced grants and loans, and further increase loan and reduce the grant with work-study in the fourth year. (MSE)

This report to Congress analyzes student loan default rates at historically black colleges and universities (HBCUs), focusing on student characteristics which may predict the likelihood of default. The study examined available student databases for characteristics identified by previous studies as related to level of student loan defaults. Among…