Guidelines for determining the maximum amount of cash reserves needed by agencies guaranteeing loans under the Guaranteed Student Loan Program are offered to the U.S. House of Representatives by the U.S. General Accounting Office. The effect of the guidelines if implemented in fiscal year (FY) 1986 are estimated. The analysis was based on data on…

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 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…

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…

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…

Four aspects of the Guaranteed Student Loan (GSL) Program are compared with credit policies on other loans made by consumer installment lenders. The four aspects are: (1) the planning, screening, monitoring, collecting, and write-off policies on GSLs versus uninsured loans; (2) the importance of the Student Loan Marketing Association in providing…

Hearings were conducted to discuss legislation aimed at reducing student loan defaults in the federal Guaranteed Student Loan program. The Student Default Initiative Act of 1988 is designed to address the growing cost of student loan defaults and the increasing imbalance between grant and loan assistance. It develops a procedure to get the…

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 aid records from a national sample of aid recipients attending independent colleges and universities with enrollments of more than 500 students were evaluated. It was found that recent reductions in federal student assistance and restrictions placed on program eligibility reduced substantially the number and proportion of low-income…

Federal aid has had many overlapping purposes and effects, from labor objectives to bolstering institutional enrollments, but the larger mission has been to help people realize their educational aspirations regardless of individual economic or social origins. The history and future of the democratization of college opportunities are discussed.…

Federal costs of the National Direct Student Loan (NDSL) program and the Guaranteed Student Loan (GSL) program are compared, and alternatives to the current system of student financial assistance are discussed. It is estimated that over the life of the loan, the long-term federal costs of GSL and NDSL per dollar loaned are approximately the same…

The growing campus role in providing student financial aid is discussed based on data from the Cooperative Institutional Research Program, Peterson's Guide, and other sources. The campus contribution to student aid programs has grown far more than recent tuition increases. A significant portion of the financial aid burden has passed from federal…

The merits of providing more loan opportunities to parents and students and the implications of this growing reliance on borrowing are considered. The objective is to clarify the alternative federal aid approaches that will be discussed as part of the reauthorization of the Higher Education Act. Federally-sponsored loan programs include Guaranteed…

The impact of changes in student aid policies on the way students and their families pay for college is examined. A major focus is how student loans fit into the overall framework of student finance. Information is presented on the National Direct Student Loan program and Guaranteed Student Loan program. Both programs provide the opportunity to…

Background questions to support a federally-sponsored assessment of major student aid delivery system options are addressed. Attention is directed to: (1) information needed by the U.S. Secretary of Education to decide about changes to the delivery system; (2) reasons that delivery system redesign is a critical issue; (3) what can be learned from…