Kansas Wesleyan University, the first postsecondary institution to experience a sudden federal crackdown on delinquent loans for dormitory construction, developed a seven-part plan of payment and alternative building use and learned some lessons about resolving such a situation. (MSE)

Actions that a college might pursue if they have difficulty meeting their financial obligations on dormitory construction loans are discussed by the president of Kansas Wesleyan University. It is noted that when the administration of the loan program was shifted to the new Department of Education (the Department), the agency pushed to collect all…