In the nearly fifty years since the adoption of the Higher Education Act of 1965, financial aid programs have grown in scale, expanded in scope, and multiplied in form. As a result, financial aid has become the norm among college enrollees. The increasing size and complexity of the nation's student aid system has generated questions about…

Under the Federal Family Education Loan Program (FFELP) and the Federal Direct Loan Program (FDLP), the government guarantees and makes consolidation loans to help borrowers manage their student loan debt. By combining loans into one and extending repayment, monthly repayments are reduced. Unlike other student loans, consolidation loans carry a…

This Postsecondary Education Descriptive Analysis Report uses data from the National Postsecondary Student Aid Studies (NPSAS:96, NPSAS:2000 and NPSAS:04) to examine trends in Stafford loan borrowing among undergraduates. NPSAS consists of nationally representative survey data that focus on student financial aid and the enrollment and background…

A program designed to provide student aid has spun out of control, becoming a cash cow for colleges and universities. The Department of Education has not adequately controlled the Federal Family Education Loan Program (FFELP), according to a recent report from the Government Accountability Office (GAO). Originally, traditional lending institutions…

Recent developments on the topic of Guaranteed Student Loan defaults are summarized, in light of a recent shift in the focus of default reduction efforts from loan originators to the schools themselves. Background information on recent default reports is provided, the recommendations of the Secretary of Education are discussed, and the legislative…

This paper offers proposals for streamlining and simplifying the federal student loan programs in light of legislative and budgetary changes in progress during the early part of the Clinton Administration. The recommendations are based on 35 proposals submitted by institutions, associations, guaranty agencies, secondary markets, lenders, and loan…

The Guaranteed Student Loan (GSL) program's current operations, legislative history, and growth are reviewed, along with research needs. GSLs are made by lenders to college students, and the federal government guarantees them and provides incentive payments to lenders and subsidy payments on behalf of students until loan repayment begins. Today,…

This literature review examines the effectiveness of student financial aid in light of doubts raised about it at the start of the 1980s and subsequent cuts in federal support for student aid as a result of those doubts. The review has three objectives: to determine whether there are reasons to doubt the effectiveness of student aid; to determine…

This background paper on institutional lending examines institutional lender policy in the Stafford Student Loan Program, the study of which was mandated in the 1986 reauthorization of the Higher Education Act. The paper's particular purpose, however, is to familiarize the reader with the general operation of programs and the historical…

The General Accounting Office reviewed 18 relevant studies and analyzed existing data from the High School and Beyond Survey of 58,728 students to determine students' and parents' knowledge of federal financial aid for postsecondary education. It was found that students and parents knew very little about financial aid and held erroneous views…

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…

This report presents an analysis of the debt levels and debt burdens of recent college graduates, based on student-reported data from four national surveys taken over the period 1977 to 1986. The major findings of this study were the following: (1) one out of two 1986 college graduates had some undergraduate debt representing an increase from one…

In 1989 and 1990 the Advisory Committee on Student Financial Assistance to standing committees in the U.S. Congress identified and explored issues for consideration in the reauthorization of the Higher Education Act and Title IV programs. Through 18 months of information gathering the Committee uncovered three problem areas. The first problem is…

Reviews problems with the Stafford Student Loan Program (Federal Family Educational Loan Program), including high-risk borrowers, dishonest school officials, negligent lenders, and guaranty agencies. Critiques recent reform measures designed to simplify the program. Suggests alternative policies, particularly direct loans from the federal…

As part of the reauthorization of the Higher Education Act of 1965 the Congress has examined concerns over the integrity of the student aid program and has consequently looked at reforming the current structure used to approve schools for program participation. The current structure has a "triad" format whereby schools that wish to…