Researchers, economists, and campus administrators who have followed federal student aid programs worry that businesses have turned the Guaranteed Student Loan Program into a lucrative industry that doesn't always have the students' interest in mind, and a congressional study group is also concerned about aspects of the program. (MSE)

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 Advisory Committee's final report presents study activities, findings, and recommendations for the simplification of the Federal Family Education Loan Program (FFELP). Analysis showed that the current FFELP program structure and operations are needlessly complex and require major reform. An interim report providing recommendations for the…

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)

This report proposes reform recommendations in the Federal Student Loan Program that are intended to reduce government (and taxpayer) costs, allow for the incorporation of the National Service Initiative, and provide more flexible repayment terms for borrowers. The proposal provides for an evaluation period for direct government lending, the…

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 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 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…

Federal agencies have had to begin making automatic budget reductions according to the new version of the Gramm-Rudman-Hollings deficit-reduction law, resulting in increased student loan fees and decreased banker subsidies. (MSE)

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 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…

This report provides results of a study that measured lender profitability in the Guaranteed Student Loan (GSL) program and compares these results with the profitability of other types of lending. Data analysis reveals credit card lending to be the highest average level of profitability over the 5-year period considered. Other lending types, in…

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)

This paper responds to a congressional request for more information concerning first, the potential cost savings from direct rather than guaranteed student loans and second, the ability of the Department of Education and postsecondary institutions to effectively manage a direct lending program. The report: (1) provides a more complete analysis of…

This paper offers information and analysis of the direct lending portion of the reauthorization of the Higher Education Act of 1965. The direct lending proposal is described in an opening letter to the reader as a provision that would make the Pell Grant Program an entitlement and raise the maximum award to $4,500 with provisions that would…