ERIC Number: ED449746
Record Type: Non-Journal
Publication Date: 2001-Jan-19
Reference Count: N/A
Final Report Regarding the Findings of the Study Group on the Feasibility of Using Alternative Financial Instruments for Determining Lender Yield under the Federal Family Education Loan Program.
General Accounting Office, Washington, DC.; Department of Education, Washington, DC.
The Higher Education Amendments of 1998 required a study of the feasibility of alternative financial instruments for determining lender yields in the Federal Family Education Loan Program (FFELP) and called for an evaluation of the 91-day Treasury bill, 30-day and 90-day commercial paper, and the 90-day London Interbank Offered Rate (LIBOR) as possible reference rates for lender yields. The legislation created a study group, which met five times to discuss issues outlined in the statute. This report contains an analysis of the six statutory requirements for financial instruments for determining lender yields, but does not attempt to reach a conclusion because study group members could not reach agreement. The report describes the different positions of study group members. The Ticket to Work and Work Incentives Improvement Act of 1999 (Public Law 106-170) subsequently amended the Higher Education Act to replace the T-bill with commercial paper as the reference rate for lender yields for new FFELP loans made between January 1, 2000 and June 30, 2003. This report should be useful as Congress considers whether to continue that policy. (SLD)
Descriptors: Debt (Financial), Federal Aid, Federal Legislation, Higher Education, Student Loan Programs
U.S. General Accounting Office, P.O. Box 37050, Washington, DC 20013; Tel: 202-512-6000; Fax: 202-512-6061; e-mail: firstname.lastname@example.org; Web site: http://www.gao.gov.
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: General Accounting Office, Washington, DC.; Department of Education, Washington, DC.