Since the Guaranteed Student Loan Program was changed from a loan of convenience to one of need, slightly fewer students at State University College at Cortland, New York, are borrowing money but they are borrowing slightly more per loan. The author concludes that changes have neither helped nor hurt students. (JT)

The federal government has traditionally relied on a variety of private accrediting bodies and state chartering and licensing authorities for determining eligibility and exercising direct supervision and consumer protection in education. As Federal financial assistance directly to students has expanded (3 million students received $6.4 million in…

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)

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 report looks at information on federally guaranteed student loans and loan defaults for students attending Historically Black Colleges and Universities (HBCUs) and how the application of federal default rate thresholds to HBCUs beginning in July 1994 might affect their participation in federal student aid programs. The July 1994 thresholds…

This summary report is one of a series addressing major policy, management, or program issues facing Congress and the administration. The issues identified in this report indicate the need to: reduce the cost and preserve the integrity of higher education student loan and grant programs; enhance the federal role in monitoring lenders, agencies,…

It is argued that direct lending by the federal government to the student, characterized by direct financing, delivery, and communication, is a form of financial aid more cost effective than current programs such as the federal Guaranteed Student Loans. Direct loans can be better administered by the federal government, and protection against fraud…

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 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 private profit-making corporation chartered by Congress in 1972 to create a secondary market for Guaranteed Student Loans (a program established by Title IV-B of the 1965 Higher Education Act). Sallie Mae's job is to help lending institutions thaw frozen cash and make more loans. (BM)

Historical data concerning the federal Guaranteed Student Loan Program/Stafford Student Loan Program/Family Education Loan Program are presented, tracing default rates since 1980 and the population distributions for borrowers by institution type (overall, collegiate, noncollegiate, public or private, two- or four-year, proprietary). Individual…

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…

As the Guaranteed Student Loan Program became a necessity for a substantial portion of students at many schools, statutory provisions were revised authorizing the Office of Education (OE) to regulate institutions participating in the program. Implications of this regulatory responsibility are discussed. (LBH)

The cost to a typical borrower of participating in the Guaranteed Student Loan (GSL) program was studied, based on the analysis of automated models that calculate total borrower costs under various scenarios. The focus was related to the actual costs of obtaining and repaying a student loan. Conclusions are as follows: (1) student borrowers under…