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)

In the current implementation of the Federal Direct Student Loan Program, there are lessons to be learned from past higher education loan programs, better ways to administer these programs and direct loans, and points to remember as direct loans are implemented. Current guaranteed student loan programs have been the subject of scrutiny recently…

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,…

The Student Loan Marketing Association ("Sallie Mae") is a government sponsored, private, for profit corporation, created in June 23, 1972, by the enactment of Section 439 of the Higher Education Act of 1965, as amended. Sallie Mae provides liquidity to commercial banks, savings and loan associations, mutual savings banks, credit unions,…

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 discusses recent changes in federal aid to postsecondary students enacted by Congress during 1992-93, focusing on the 1992 Amendments to the Higher Education Act and the 1993 Federal Direct Student Loan (DL) Program. The report reviews recent issues surrounding federal aid to postsecondary students, such as program accountability and…

The special allowance component of the Guaranteed Student Loan (GSL) program was evaluated through research and hearings. Attention was directed to: the experiences of students and eligible lenders; the administrative costs of various types of eligible lenders; financial indicators that accurately reflect the costs of capital; and administrative…

Student loan programs have been racked by defaults, bankruptcies, and administrative trivia, causing Congress to search for another system. Under consideration is a loan that would be repaid to the Internal Revenue Service through a withholding tax. However, better collection efforts with the present system are producing encouraging results. (JMD)

An evaluative study was done of the Department of Education's system of internal accounting controls over the Federal Family Education Loan Program, known as the guaranteed student loan program. The study evaluated internal control systems, the structure of the program with respect to the role of guaranty agencies, and the Department's ability to…

The financing of guarantee agencies under the U.S. Department of Education's Guaranteed Student Loan Program was reviewed to determine whether, in the aggregate, the agencies are accumulating, retaining, and using reserve funds in accordance with legislative requirements and federal regulations. It was found that reserves exceed the risks…

The flow of capital to and through the Guaranteed Student Loan (GSL) Program and the cost of that capital to the federal government and the individual borrower were studied. A review of the research on student loan capital was conducted, and automated cost models were developed to test assumptions and project future costs. Attention was directed…

Information is provided on 14 federal programs providing financial assistance to undergraduate students in universities, colleges, and vocational/technical schools. The programs provide three different types of assistance: grants (or scholarships), loans, and job earnings. Grants and scholarships do not have to be repaid, but loans do. Some of the…

The history of the role of state guarantee agencies in the Guaranteed Student Loan (GSL) Program is reviewed in terms of the initiation of the GSL program, the growth of the Federally Insured Student Loan Program, the initiation of the special allowance, and the Education Amendments of 1972, the Education Amendments of 1976, the Middle Income…

The council's recommendations for 1977 for college-based financial aid programs and for the guaranteed student loan program are both summarized and explained, and the progress of financial aid programs in 1976-77 is reviewed. The latter review includes the training of aid administrators, aid application simplification, regulations and guidelines,…

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…