In almost half of the Department of Education's biennial audits of colleges receiving federal financial aid, institutions are found to have made mistakes in aid distribution, and each year the department asks colleges to return $25-million in aid money. Better oversight methods are urged. (MSE)

Student financial aid analysts are suggesting the federal government establish a government-run loan bank or trust fund to eliminate the need for lender involvement in the Guaranteed Student Loan Program, but congressional aides think that dismantling the existing program is unlikely. (MSE)

The American Council on Education's president has proposed a broad plan to overhaul federal student aid, replacing current programs with a more coherent plan. It would expand grant-money for low-income students and maintain the present guaranteed-loan program while creating two new loan plans to reduce government costs. (MSE)

The surge in federal aid to students at proprietary schools, many of whom drop out, means that students seeking bachelor's degrees at non-profit public and private institutions are getting less aid. Proprietary schools claim they are doing a better job of educating disadvantaged students. (MSE)

This report of the Panel on Quality Improvement in Student Financial Aid Programs examines the quality control of federal student financial aid programs covered by Title IV of the Higher Education Act of 1965 and offers recommendations calling for sweeping revisions of the present system. The report explores: (1) the quality control practices…

The Javits fellowship program, designed to encourage students to enter the arts, humanities, and social sciences by offering fellowships that would allow them to attend prestigious institutions, is described. Some believe the Reagan Administration has delayed each competition because it wanted to abolish the Javits program. (MLW)

Secretary of Education William J. Bennett has challenged colleges to curb their costs and is considering a federal policy that would reduce financial aid to students whose institutions increase their charges much beyond the inflation rate. He proposes that federal policy has fueled the college cost spiral. (MSE)

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…

Colleges and lenders are devising new ways to help families pay tuition in light of recent changes in federal aid and tax policies. The alternatives include federal supplemental credit programs, loans promoted by financial institutions, extended repayment plans securing loans with home mortgages, and regional long-term supplemental loans. (MSE)

This report responds to the 1992 Virginia General Assembly's request of the State Council of Higher Education to "study the efficacy and appropriateness of establishing a prepaid tuition trust program within the Commonwealth's system of higher education." They asked that the study include, at least, an examination of programs in other…

This report presents the results of an audit of the Principal Financial Statements of the Department of Education's Federal Family Education Loan Program and its internal controls and compliance with laws and regulations for the fiscal year ended September 30, 1992. The report details the following findings: (1) the Statement of Cash Flows were…

This letter report by the Director of Education and Employment Issues in the U.S. General Accounting Office responds to a request from Senator Edward M. Kennedy for information on the federal costs involved for liquidation activities of the Higher Education Assistance Foundation (HEAF) in fiscal year (FY) 1992, the second year of the agreement to…

This advisory report investigates the possible simplification of the Federal Family Education Loan Program (FFELP) and considers the issue of federal direct lending. The evaluation indicates that complexity in the FFELP is due to multiple, overlapping loan programs with conflicting terms and conditions. Nonstandard policies, procedures, forms, and…

This document presents seven papers that address several aspects of the new direct lending federal loan program established by the Student Loan Reform Act of 1993. Among the topics examined are the following: (1) the experiences with implementing new student aid programs; (2) the policy questions involved in lending in proprietary (profit-making)…

This report presents the goals and intentions of the National Association of Student Financial Aid Administrators (NASFAA) for the next 5 years. It describes the development of this plan, the place of NASFAA in environmental and historical contexts, and how the plan will be implemented and monitored. Goals for NASFAA activities include to: (1)…