Confusion Is Delaying Federal Student Loans
By William K. Stevens
NY Times survey finds Fed Govt's $1.3-billion-a-yr guaranteed student loan program, largest single source of financial aid for nation's coll students, is in state of chaos as result of misunderstandings about how newly revised and expanded program is supposed to work; delays mean many of 1.2-million students entitled to receive money are temporarily without funds as they return to school; most students are expected to get loans by Oct or Nov; under provisions of old loan program any student in good standing in accredited coll whose gross family income was less than $15,000 could get Fed guaranteed bank loan of up to $1,500; loan was granted on basis of expected costs, compared to expected income from other sources, employment, scholarships, grants or loans, but it was not necessary to list amount student was getting from his family; under revised program, maximum annual loan per student is raised from $1,500 to $2,500 and benefits are extended to students whose gross family income is greater than $15,000 per yr; revisions require examination of income and general financial needs of student's family to determine how much family reasonably can be expected to contribute toward educ; language of revision deletes books, supplies and personal expenses from costs that would be considered in making loan; elimination of these expenses, coupled with test of family's needs, means that many students now receiving loans are ineligible for them; Sen Pell says this violates intent of bill, which was to broaden program, not constrict it; Sen officials say books and supplies will be restored but it is not clear whether needs test of family incomes will remain for students whose family income is under $15,000; it is generally felt that test is justified for students whose family income exceeds that amount; Cong hearing on loan program is scheduled for Sept 21 by Repr E Green; Under Sec of Treasury C Walker, who has been assigned to adm program in place of Educ Office, is expected to testify; 35 reprs of nearly every group involved in loan programs attended meeting Sept 13 called by Natl Assn of Student Financial Admrs