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ERIC Number: ED234732
Record Type: Non-Journal
Publication Date: 1983-Jul-19
Pages: 9
Abstractor: N/A
Reference Count: N/A
Guaranty Agency Questionnaire.
Leifman, Steven
The extent to which guaranty agencies, lenders, and state secondary markets impose restrictions on Guaranteed Student Loan (GSL) borrowing that go beyond federal regulations was assessed through a survey of 53 guaranty agencies. Seventeen of the agencies imposed restrictions on GSLs that go beyond federal regulations, including not loaning to borrowers from correspondence schools, part-time students, or out-of-state students. A total of 49 agencies used commercial lenders, and the most common restrictions imposed by the lenders were the requirement of a previous customer relationship and an unwillingness to lend to out-of-state students and students enrolled in less-than-two-year programs. For the 13 agencies using direct lenders, the most common restriction imposed on borrowers was the unwillingness to lend to out-of-state students. Of the 24 agencies operating a secondary market, 7 imposed restrictions, including the following: a requirement of a minimum balance of $1,000 on loans they will purchase, an unwillingness to purchase loans made either to students from out-of-state institutions or to out-of-state borrowers attending institutions in the guaranty agency's state, and an unwillingness to purchase loans from borrowers from institutions with certain default rates. (SW)
Publication Type: Reports - Research; Tests/Questionnaires
Education Level: N/A
Audience: Policymakers
Language: English
Sponsor: Congress of the U.S., Washington, DC.
Authoring Institution: National Commission on Student Financial Assistance, Washington, DC.
Identifiers - Laws, Policies, & Programs: Guaranteed Student Loan Program