ERIC Number: ED343476
Record Type: Non-Journal
Publication Date: 1991-Oct-29
Reference Count: N/A
Direct Student Loans Could Save Money and Simplify Program Administration. Statement of Franklin Frazier, Director Education and Employment Issues, Human Resources Division, before the Committee on Labor and Human Resources, United States Senate.
This document reproduces the testimony on the subject of a recent General Accounting Office report on the relative federal cost of guaranteed and direct student loans in postsecondary and higher education. The comments focus on the potential federal savings associated with substituting Stafford loans with direct loans and the effect that a direct loan program could have on the administrative functions of the Department of Education and postsecondary educational institutions. Following introductory comments, the testimony addresses the administrative complexity of the Stafford loan program. The discussion goes on to look at a proposed direct loan program and how its administration would compare with the Stafford program. The testimony argues that the proposed direct loan system would be significantly simpler to administer and goes on to assert that such a program would save over one billion dollars in the first year. In addition, the argument points out, layers of oversight would be reduced and school administrative functions would be simplified. The discussion concludes by identifying related issues that still need clarification. Three figures are included. (JB)
Descriptors: Educational Finance, Federal Aid, Federal Legislation, Federal Regulation, Financial Policy, Financial Services, Government School Relationship, Higher Education, Money Management, Program Administration, Student Financial Aid, Student Loan Programs
U.S. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20877 (first copy free; additional copies $2.00 each).
Publication Type: Legal/Legislative/Regulatory Materials
Education Level: N/A
Authoring Institution: General Accounting Office, Washington, DC. Div. of Human Resources.
Identifiers - Laws, Policies, & Programs: Stafford Student Loan Program