ERIC Number: ED459669
Record Type: Non-Journal
Publication Date: 2001-Dec-18
Reference Count: N/A
Alternative Market Mechanisms for the Student Loan Program. A Report by the U.S. Department of Education and the U.S. General Accounting Office.
Department of Education, Washington, DC.; General Accounting Office, Washington, DC.
The 1998 Amendments of the Higher Education Act require the U.S. Department of Education and the General Accounting Office to identify no fewer than 3 different market mechanisms for use in determining lender return on student loans while continuing to meet the other objectives of the Federal Student Loan Program. This report is the final report of a joint study group that analyzed various policy options for the Loan Program. The report does not make any recommendations about the course to follow. To study the market mechanisms, the study group reviewed reports and asked for proposals from study group members and others. The proposals were grouped into five general models: (1) adjustments to the current system; (2) the loan origin rights auction model; (3) loan sale; (4) the federal funding model; and (5) the market-set rate model. Chapter 1 of this report contains background material and a brief history of the Federal Family Education Loan Program. Chapters 2 through 6 contain an analysis of each of the models relative to the 13 criteria set out in the legislative mandate. Chapter 7 discusses income contingent repayment as it might be applied to any of the models. Sixteen appendixes contain supplemental information and the public comments from various experts on a draft version of the report. (Contains 19 tables and 2 figures.) (SLD)
U.S. General Accounting Office, P.O. Box 37050, Washington, DC 20013. Tel: 202-512-6000; Fax: 202-512-6061. For full text: http://www.gao.gov/new.items/do284sp.pdf.
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Department of Education, Washington, DC.; General Accounting Office, Washington, DC.
Identifiers - Laws, Policies, & Programs: Family Education Loan Program