ERIC Number: ED365260
Record Type: Non-Journal
Publication Date: 1993-Jun
Reference Count: N/A
The Impact of Significant Federal Student Loan Policy Changes and the Role of States in Student Credit.
Wennerdahl, Carol; Boyd, Joseph D.
This monograph reviews the role of the states in federal student loan programs since the inception of the Guaranteed Student Loan Program under Title IV, Part B of the Higher Education Act of 1965. Part I examines the program during its first 15 years when the program was experiencing its most turbulent times. State and federal roles were fluid and very often in conflict. Part II looks at the program's growth from 1980 to the present by the use of tables and graphs to display the changes over time in key guarantee agency measurements. Liberal student eligibility requirements and a predictable interest rate structure were primary factors in an explosion of program growth. Graphs illustrate such factors as loan volume, administrative costs, default claims, and other measurements using data reported annually by the guarantee agencies. In Part III, the authors reflect on their experiences with student loan programs over the last 27 years and discuss critical issues in considering policy changes in student loan programs or other higher education finance policies. Policy makers are urged to consider the following aspects of a new program: (1) impact on average indebtedness; (2) unanticipated program demand; and (3) vulnerability to subsequent, unwanted change. An appendix provides additional tables displaying data for the fiscal years 1981 through 1992. (DB)
Publication Type: Reports - Evaluative
Education Level: N/A
Sponsor: Lilly Endowment, Inc., Indianapolis, IN.
Authoring Institution: American Council on Education, Washington, DC.
Identifiers - Laws, Policies, & Programs: Family Education Loan Program; Guaranteed Student Loan Program; Higher Education Act 1965; Stafford Student Loan Program