Hearings on reauthorization of the Higher Education Act, and specifically Guaranteed Student Loans (GSL), are presented, with a focus on issues of multiple disbursements, loan consolidation, subsidies, and copayments. Witnesses represent the lending institutions, secondary markets, and students. The GSL program is designed to promote the availability of loans from banks and other lenders to college students and their parents. Provisions of the act encourage lenders to disburse individual student loans on a multiple instalment basis two to three times throughout the school year rather than on a lump-sum basis at the beginning of the school year. The act provides a monetary incentive for lenders to do this by permitting additional float on the undisbursed portions of the loans. Loan consolidation was conceived of as a program for a small number of highly indebted students who needed help in managing their indebtedness. Loan consolidation was undertaken by the Student Loan Marketing Association (Sallie Mae) for about a 2-year period. Information is provided on the Sallie Mae Options Program, which allows for reduced monthly loan payments and a fixed interest rate for GSL, National Direct Student Loans, and Federally Insured Student Loans. Application forms for the options program are included. (SW)