For several months, the subprime-mortgage crisis has hovered over colleges, its ultimate effects uncertain. That is changing. In the past few weeks, a series of loan companies have withdrawn from broad categories of student lending, and some colleges have acknowledged sharp increases in borrowing costs. The most severe effect may be still to come,…

The purpose of the United States Department of Education's (the Department) FY 2013 "Agency Financial Report" (AFR) is to assist Congress, the President, and the American people to assess the Department's stewardship over resources with which it is entrusted. This annual report is required by legislation and complies with the…

In the last forty years, federal and state financial aid policy has fundamentally shifted the way in which students and families finance college costs. Whereas grants once served an important function in equalizing college opportunity, loans are now considered a key lever against escalating postsecondary costs (McPherson and Shapiro, 1998). This…

This guide explains in a question-and-answer format the Federal Direct Consolidation Loan Program, which is part of the William D. Ford Federal Direct Loan Program and is designed to help students and parents manage and repay money borrowed for postsecondary education, usually with just one monthly payment. Advantages of a Direct Consolidation…

A study was done of how interest rate floors on certain guaranteed student loans affect the federal government's and students' costs when rates on short-term government securities decline. The study developed cost comparisons using fixed and variable loan interest rates. For comparison Department of Education projections of loan volumes for fiscal…

This document reviews financial aid policies at 86 higher education institutions across the U.S. with implications for student admissions practices. Particular efforts were made to include in the sample colleges and universities with special characteristics, such as those enrolling a high proportion of minority students, those drawing their…

The Federal government operates several programs that provide money, either as loans or as a combination of grants and loans, to students. This paper attempts to clarify the economic and budgetary implications associated with continuing these existing programs, and discusses the differing economic consequences that would follow if some alternative…

In fiscal year 2004, the federal government made or guaranteed about $84 billion in loans for postsecondary education through two loan programs--the Federal Family Education Loan Program (FFELP) and the Federal Direct Loan Program (FDLP). Under FFELP, private lenders fund the loans and the government guarantees them a minimum yield and repayment…

This guide, written in Spanish, discusses how to repay student loans. Following a general introduction, the guide discusses the grace period before repayment and repayment requirements. Repayment plans are described for Perkins Loans, Direct Loans, and Federal Family Education Loans. Repayment options are discussed, including consolidation,…

The Higher Education Amendments of 1998 required a study of the feasibility of alternative financial instruments for determining lender yields in the Federal Family Education Loan Program (FFELP) and called for an evaluation of the 91-day Treasury bill, 30-day and 90-day commercial paper, and the 90-day London Interbank Offered Rate (LIBOR) as…

Describes the Basic Educational Opportunity Grant (BEOG) program, authorized in the 1972 Education Amendments. (Author/PG)

A new formula needs to be devised at the College Scholarship Service that would allow students from above average income families to attend private colleges and universities without such great financial burden. (HS)

There is increasing evidence that we have created a system to educate middle-class America, with the number of low income students disproportionately low. (Author)

Explains new tax laws including the cut in the capital gains tax, the "education" Individual Retirement Account, and deductibility of interest on student loans. (JOW)