ERIC Number: ED227775
Record Type: RIE
Publication Date: 1982-Dec
Reference Count: 0
Student Loan Options: What Is Happening? Policy Brief.
Recent efforts by several states and colleges to establish new student loan programs are described, based in part on a policy seminar held in September 1982. Prospects and problems of the options are also considered. Several higher education institutions are developing loan programs that follow conventional financing methods and do not utilize federal subsidies. States have used a variety of approaches to finance alternative programs for student loans. Illinois, Massachusetts, Maryland, and Iowa have created a new authority for loans--single-purpose bond authorities to raise money for student loans through the sale of tax-exempt bonds. Expanding the mandate of existing bond authorities (e.g., for housing facilities) to include student loans is another approach. A third approach is the use of the state board of higher education. In addition, new federal loan programs--PLUS and ALAS (Parent Loans for Undergraduate Students and Auxiliary Loans to Assist Students)--may assume an important role as a supplement to the Guaranteed Student Loan Program. Areas of concern include the expense of conventional financing methods, tax-exempt bonds, and public policy issues. Criteria that might be useful for evaluating alternative loan options are identified. (SW)
Descriptors: College Students, Educational Finance, Federal Aid, Financial Policy, Fund Raising, Higher Education, Interest (Finance), Public Policy, Student Financial Aid, Student Loan Programs
American Council on Education, Division of Policy Analysis and Research, One Dupont Circle, Washington, DC 20036.
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: American Council on Education, Washington, DC. Div. of Policy Analysis and Research.