ERIC Number: ED255158
Record Type: Non-Journal
Publication Date: 1985
Reference Count: N/A
Student and Parent Loans: A Growing Reliance.
Miller, Scott E.
The merits of providing more loan opportunities to parents and students and the implications of this growing reliance on borrowing are considered. The objective is to clarify the alternative federal aid approaches that will be discussed as part of the reauthorization of the Higher Education Act. Federally-sponsored loan programs include Guaranteed Student Loans, National Direct Student Loans, and Parent Loans for Undergraduate Students (PLUS). Some states also offer supplemental student loans for students attending high-cost schools. Lending programs, which are generally viewed favorably from a political point of view, are a cost-effective means of providing aid. Several recent proposals submitted to Congress would center all student financial aid in credit programs. These programs would require students to repay all of the money received at a rate compatible with their earnings once they leave school. Others would serve as supplements to existing financial aid programs in order to serve middle-income families that do not normally qualify for federal grant aid. Concern has been raised that students are already assuming too much debt, which may detrimentally affect the national economy as well as the economic viability of the student after graduation. An overall program of student grants, work, and loans is advocated. (SW)
Descriptors: College Students, Credit (Finance), Debt (Financial), Economic Factors, Federal Aid, Higher Education, Loan Repayment, Middle Class Students, Parent Financial Contribution, Policy Formation, Position Papers, Public Policy, Student Loan Programs
American Council on Education, Division of Policy Analysis and Research, One Dupont Circle, Washington, DC 20036-1193 (limited supply, free).
Publication Type: Opinion Papers
Education Level: N/A
Sponsor: EXXON Education Foundation, New York, NY.
Authoring Institution: American Council on Education, Washington, DC. Div. of Policy Analysis and Research.
Identifiers - Laws, Policies, & Programs: Guaranteed Student Loan Program