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 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…

The committee examined the special allowance made to lenders in the Guaranteed Student Loan Program to assure that it continues to be an effective incentive. The allowance was examined in its relation to: (1) administrative costs incurred by lenders, including those attributable to federal regulations; and (2) appropriate money-market indices. A…

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…