Student Loan Reform. Hearing on S. 920 of the Committee on Labor and Human Resources, United States Senate, One Hundred Third Congress, First Session.

The Senate Committee on Labor and Human Resources met to consider an amendment to the Higher Education Act of 1965 to improve the delivery of college financial aid by moving from guaranteed students loans to direct loans. Under a system of direct loans, students would borrow directly from the Federal Government by applying through their colleges. Senators who offered opening statements on the proposed legislation were Senators Durenberger, Kassebaum, Pell, Jeffords, Metzenbaum, Hatch, Simon, Dodd, Coats, Wellstone, Gregg, Kennedy, Mikulski, and Thurmond. Proponents of the change noted increased access to loans, budget savings, and system simplification. Opponents cited the difficulty of change, the difficulty of knowing exactly the consequences of a new system, risks to the government, and costs of administration. The Committee also heard from a panel led by Madeleine Kunin, Deputy Secretary of the Department of Education presenting the Administration plan and answering questions on details of the plan. In addition a group of college presidents, university administrators, and students appeared to offer their views on proposed changes. Finally a large number higher education leaders of associations and financial aid groups appeared to offer their testimony on the legislation. Additional materials appended includes articles, publications, reports, and correspondence. (JB)