This article reports that a pair of university presidents is among the people feeling the heat from the collapse of the investment bank Bear Stearns. Henry S. Bienen, president of Northwestern University, and the Rev. Donald J. Harrington, president of St. John's University, in New York, were among the 12 members of the Bear Stearns Companies'…

This article reports on Wachovia Bank's move in freezing the accounts of nearly 1,000 colleges that invest through Commonfund, leaving them unable to reach billions of dollars they depend on for salaries, construction, and debt payments. The move could cause other ripples, as Moody's Investors Service announced it would review the credit impact of…

Supporters of the new direct student loan program are critical of the private loan-guarantee agencies that cover lender losses on defaulted loans, portraying them as greedy, inefficient, and plagued by conflicts of interest. In turn, the agencies and banks doubt federal capacity to manage student borrowing. (MSE)

Colleges and universities are finding that improvements in the guaranteed student loan process are making it more attractive than direct lending. In its third year, the direct lending program's total loan volume remains at 33%, well below the 50% goal set in originating legislation. Even some of its strongest supporters fear the program will have…

Explores how, in deals meant to win friends as well as fees, colleges like Drexel University are joining with outside companies to offer online banking services. Discusses the risks and advantages of such private-label financial services for students, faculty/staff, and alumni. (EV)

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)

The federal Department of Education will help college students save money on loan interest if they consolidate loans in the direct lending program while in college. Some college lobbyists feel the administration has not done enough to cut fees and help students and colleges and, as a result, may lose direct-loan participants to bank-loan programs.…

An informal survey of some New England colleges indicates that, in response to problems in the region's banking industry, school financial officers are monitoring their banks' credit ratings and managing investments more carefully. Consultants and investment advisors are also reporting increased anxiety among college officers and trustees around…

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)

Top business schools in the 1980's have sent more students to Wall Street's investment and brokerage houses than in past years when the schools were considered training grounds for corporate managers. With Wall Street's gyrations, business students are thinking about jobs in marketing and sales. (MLW)

The Student Loan Marketing Association (Sallie Mae) and the Clinton Administration are preparing legislation to transform the federally sponsored corporation into a private business but must negotiate complex political and financial issues. Destabilization of the private student-loan industry and conflict over direct-lending policies are central…

Discusses issues addressed by a Congessionally mandated panel to identify and evaluate options for infusing market forces into the student loan program. Notes possible advantages. Conflicting views of the panel's student representatives, college administrators, and lenders are reported concerning reductions of lenders' profits, removal of…

The Clinton Administration's proposed overhaul of the guaranteed student loan program would pay banks the amount of unpaid federal student loans, making the government the sole insurer of the loans. Guarantee agencies feel this action would strip them of their primary tasks of reimbursing lenders for unpaid loans. The initiative is intended to…