ERIC Number: ED263859
Record Type: Non-Journal
Publication Date: 1985-Oct
Reference Count: N/A
Improving the Student Financial Aid System to Provide Efficiency for Taxpayers. Program Report 85-14.
Douma, Wallace H.
Ways to improve college student loans, work-study, and grants programs are suggested, based on the experience of the financial aid director at the University of Wisconsin-Madison. It is recommended that emphasis be shifted from the Guaranteed Student Loan (GSL) Program to the National Direct Student Loan (NDSL) Program, which is more cost-effective to taxpayers. In addition to increasing the appropriation for NDSL, nine other recommendations are offered, including: keeping the present needs test under the Uniform Methodology, and increasing the institutional match from 10 to 20 percent. Eight changes for GSL are also suggested, such as: applying the present needs test system to all applicants, including those earning below $30,000; and raising to 10 percent the interest rate borrowers pay after leaving school. Two ways to improve the College Work-Study program are to keep the Uniform Methodology to channel money to the neediest students, and to require schools to contribute 25 instead of the present 20 percent. Decentralizing the Pell Grant program and a change in the distribution of Pell funds are advocated. Other considerations are addressed: appropriations for research on student financial aid, self-support rules, and financial aid for part-time students. (SW)
Publication Type: Opinion Papers
Education Level: N/A
Sponsor: National Inst. of Education (ED), Washington, DC.
Authoring Institution: Wisconsin Center for Education Research, Madison.
Identifiers - Laws, Policies, & Programs: Guaranteed Student Loan Program; National Direct Student Loan Program