ERIC Number: ED217808
Record Type: Non-Journal
Publication Date: 1982-Jun
Reference Count: N/A
Financing Student Loans: The Search for Alternatives in the Face of Federal Contraction.
Hauptman, Arthur M.
Student loan alternatives for states, educational institutions, and others who may be facing recent or anticipated reductions in federal aid are considered. Attention is focused on short-run possibilities that require relatively little or no modification of existing federal statutes. Considerations in developing loan alternatives include the following: whether loans will be available and affordable for students who need assistance and no longer have access to Guaranteed Student loans (GSL), the problem of loan default, and whether student borrowers can handle aggregate repayment obligations (federal, state, and institutional). In addition to the traditionally privately financed GSL and the campus-based National Direct Student Loan program, the Parent Loans for Undergraduate Students (PLUS) provides loans to parents at less federal subsidy than GSL. These three federal loan programs, and particularly the new PLUS option, are described, along with state efforts to expand loan availability, financed with tax-exempt bonds or through other means. Attention is also directed to other mechanisms, including corporate support, secondary markets, and savings plans. Rather than depend on federal or state governments, educational institutions can also establish their own loan programs, financed primarily through arrangements with private lenders and possibly supplemented with endowment funds. Appended materials include: information on the levels of assistance available through federal and state programs in the past and as proposed by the Reagan Administration, an outline of the development of federal legislation for student loans over the past quarter century, and estimates of the costs involved in providing loan subsidies and guarantees. (SW)
Descriptors: Bond Issues, Educational Finance, Eligibility, Federal Aid, Federal Legislation, Higher Education, Loan Repayment, Private Financial Support, Program Costs, Retrenchment, School Business Relationship, State Aid, Student Financial Aid, Student Loan Programs
The College Board, 1717 Massachusetts Avenue, N.W., Washington, DC 20036 ($4.00; 10 or more copies, $3.00 each).
Publication Type: Information Analyses; Reports - Descriptive
Education Level: N/A
Sponsor: Ford Foundation, New York, NY.
Authoring Institution: College Entrance Examination Board, Washington, DC.
Identifiers - Laws, Policies, & Programs: Guaranteed Student Loan Program; National Direct Student Loan Program