This document reviews federal support for education between fiscal years 1980 and 1984. Federal support for education totalled $62.2 billion in 1984, an increase of 18 percent over 1980. Between 1980 and 1984 the largest increase in federal support (30 percent as of 1984) went to research at universities and related institutions. During the same…

The Guaranteed Student Loan Program (GSL) is made up of two components: a State or private nonprofit agency loan insurance program and a Federal loan insurance program. Students in post-secondary institutions can obtain long-term loans on which the government generally pays the interest while the student is in school. The government bears all…

The federal government provides student loans for college and graduate school in two ways: by: (1) guaranteeing bank loans; and (2) by lending directly to students. Approximately three-quarters of federal student loans are guaranteed and one-quarter are direct. In the guaranteed loan program, a 40-year-old system, banks lend students money and…

The returns to college are substantial, including increased earnings and public benefits, such as better health and increased involvement in public service and giving. As a result, since the introduction of the Guaranteed Student Loan program in 1965 and the Pell Grant in 1972, the federal government has experimented with using financial aid to…

This article investigates the extent to which student borrowers might be induced to prepay by an offer from the government to share a portion of its savings expected from prepayment. The analysis suggests that potential savings are not likely to be large enough to induce significant prepayment. (Author/MLW)

Federal grant aid is seen as more costly than college work-study or loan programs. The revolving National Direct Student Loan (NDSL) funds being built at institutions have tremendous potential. For the NDSL program the interest paid by the student remains in the fund for future loans. (MLW)

The reauthorization of the Higher Education Act seeks to expand access to postsecondary education by recognizing the changing demographics of the campus community and by increasing potential funding for crucial programs. Other major changes enacted during the reauthorization process are discussed. (MLW)

Financing higher education is a four-way collaboration between the government, state and federal; the students and their families; the private sector; and the higher education institutions. Placing the entire burden of higher education on one of these parties is unreasonable. (MLW)

Results are presented of a General Accounting Office audit of the Student Loan Insurance Fund (SLIF) financial statements for the fiscal year ending September 30, 1980. SLIF finances the Guaranteed Student Loan Program by reimbursing lenders and state guarantee agencies when students default on their loans. The fund, which is managed by the…

A series of steps by the Education Department and Congress to crack down on loan defaulters are discussed. Several factors have put defaults in the spotlight, including a study listing default rates at all postsecondary institutions and hard-hitting newspaper editorials. (MLW)

Colleges and universities will be held directly responsible for loan repayments by their former students. Most postsecondary institutions with default rates of more than 20% are for-profit trade schools, community colleges, or historically Black colleges. (MLW)

The recent history of trends affecting the affordability of college are summarized. A better balance needs to be established between loan and grant support for students. The Stafford Student Loan Program (formerly the Guaranteed Student Loan Program) and the Reishauer HELP program are discussed. (MLW)

Creating separate student-aid programs for the proprietary and nonprofit sectors of higher education will be one of the most bitterly debated issues in the upcoming reauthorization of higher education law. A major point of contention is the matter of hugely disproportionate default rates among students in the different sectors. (MLW)

The loan collection efforts of the Department of Education are discussed in hearings held as part of fact finding prior to reauthorization of the Higher Education Act. Attention is directed to the collection record of the Department, the rationale for shifting collections from federal to private collectors, and the reasons why two of the remaining…

The guide is intended for use by staff of governmental agencies that exercise regulatory authority over postsecondary educational institutions. It describes a simplified system for collecting, analyzing, and sharing information on the policies and practices of the regulated institutions. The policies and practices in question are those that relate…