Statements, letters, supplemental material, etc.-Continued Marin, Kenneth J., member of the executive committee, Credit Union "Very, Very Slow," newspaper editorial__ Form for analysis of costs under guaranteed student loan program Summary cost data for credit union participation (table).. Marshall, Allen D., president and chief executive officer, United Student Aid Funds, Inc.: Appendixes to oral testimony: Appendix A.-United Student aid funds and the Higher Ed- Page 490 507 507 575 Appendix B.-Table- 576 Appendix C.-Optional deposits of a portion of NDEA re- 576 Mink, Hon. Patsy T., a Representative in Congress from the State of Fact sheet-Guaranteed loan program for college students.. 543 541 Moore, James W., director, Division of Student Financial Aid, Office of Education, HEW, letter to Richard H. Martin, counsel, Special Subcommittee on Education____ 551 Muirhead, Peter, Associate Commissioner for Education: Percentage of number of borrowers past due, by length of time 436 Record of delinquent borrowers, fiscal years 1964-66 (table)__ 436 438 Patman, Hon. Wright, Chairman, Committee on Banking and Cur- Analysis of S. 835, and its impact on student college loans__ 487 529 Reports to the Congress by the Comptroller General of the United 530 Pepper, Hon. Claude, a Representative in Congress from the State of "Banks Continue To Balk on Loans to Collegians," article in 458 "Banks Don't Aid Students," article in Miami News__ 460 Bassett, Harry Hood, chairman of the board, the First National 469 Bennett, M. M., president, St. Petersburg Junior College, letter 590 Busby, R. F., vice president, Citizens National Bank of Miami, 467 Carner, Stephen, president, Carner Bank of Miami Beach, letter 467 Champion, John E., president, the Florida University, letter from 594 593 De la Croix, Sister, R.S.H.M., Marymount College, letter from.... 591 468 Hale, Lester L., vice president for student affairs, University of 592 Hale, Morris S., Jr., president, Orlando Junior College, letter 591 Hamilton, Marshall, president, North Florida Junior College, 591 Hines, William C., chairman of board and president, University 464 Jones, Donald R., president, First National Bank of Hialeah, 466 La Pradd, Charles W., president, St. Johns River Junior College, 593 Lenfestey, F. T., president, Polk Junior College, letter from__. 591 Statements, letters, supplemental material, etc.-Continued Pepper, Hon. Claude-Continued Millican, Charles N., president, Florida Technical University, Mottola, Thomas E., president, Jefferson National Bank of Miami Page 592 465 "Pepper Introduces Bill-Student Loan Aid Asked," article in 459 Rebozo, C. G., chairman of the board, Key Biscayne Bank, letter 467 "Representative Pepper Introduces Bill To Aid Faltering U.S. Smathers, Frank, Jr., chairman and president, United Banking 460 590 468 Stafford, Roland M., president, Peoples National Bank of Com- 463 461 Thompson, Nelson E., vice president, the Florida National Bank 465 466 Williams, Kenneth R., president, Florida Atlantic University, 593 Sweeney, John L., Assistant Secretary for Public Affairs, Office of the Staver, Leroy B., president, U.S. National Bank of Oregon, letter to 588 584 590 Walker, Charls E., executive vice president, American Bankers Association: American Bankers Association: Comments on Mr. Patman's Letter to Chairman Green, dated August 25, 1967. 528 525 HIGHER EDUCATION AMENDMENTS OF 1967 WEDNESDAY, AUGUST 16, 1967 HOUSE OF REPRESENTATIVES, SPECIAL SUBCOMMITTEE ON EDUCATION OF THE COMMITTEE ON EDUCATION AND LABOR, Washington, D.C. The subcommittee met at 9:40 a.m., pursuant to call, in room 2261, Rayburn Office Building, Hon. Edith Green (chairman of the subcommittee) presiding. Present: Representatives Green, Gibbons, Carey, Hathaway, Scheuer, Quie, Gurney, and Erlenborn. Also present: William Gaul, associate counsel of the full committee, and Richard H. Martin, counsel for the subcommittee. Mrs. GREEN. The subcommittee will come to order for the further consideration of the Higher Education Amendments of 1967, directing our attention primarily to the guaranteed student loan program this morning. The first person whom the committee will hear from is the U.S. Commissioner of Education. We are delighted to have you back here again, Commissioner Howe, and Mr. Muirhead, and Secretary Barr. Commissioner Howe, will you proceed? We have copies of your statement. STATEMENTS OF HON. JOSEPH W. BARR, UNDER SECRETARY OF THE TREASURY; HON. HAROLD HOWE II, U.S. COMMISSIONER OF EDUCATION, DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, AND HON. PETER MUIRHEAD, ASSOCIATE U.S. COMMISSIONER FOR HIGHER EDUCATION Mr. Howe. Madam Chairman, I think, if you will permit, what we would like to do is to have Mr. Barr present his testimony first. Mrs. GREEN. Fine. Mr. Howe. I would say that I feel very comfortable here this morning, because I have a financial expert on my right and a person who is used to administering these programs on my left, as well as an educator. I expect to defer most of your questions to one or the other. If you will allow Mr. Barr to give his testimony first, what I probably will do is summarize mine and not take too much time so that we can get to your questions as soon as possible. Mrs. GREEN. Very good. Secretary Barr. Mr. BARR. Madam Chairman, this has been one of the most intriguing financial studies in which I have been engaged. We have been given the objective of establishing a financial plan that could, by 1972, make available to roughly 40 percent of the college population the opportunity to finance their education by borrowing the money they need. As a guideline, for the year that we are in right now, money that I was instructed to try, for less than $35 million, to make this program work better than it had been working. Operating under this guideline with a very small amount of money and, potentially a very large volume of loans, operating through the States with a minimum of Federal regulations and standards, and leaving the initiative with the students and the lending institutions, as I say, posed a real challenge. I am delighted to be able to inform you and the committee, however, that in this past 9 months of negotiations we have had the enthusiastic support of every sector of the financial community: life insurance companies, credit unions, mutual savings banks, savings and loan institutions, and commercial banks. They worked with us carefully; we have had their best advice, and I know that the program has their enthusiastic support. Otherwise, to reach the objective of this size with this very, very small amount of money that is available to us under the budget would be impossible. Mrs. GREEN. Are there any credit unions which cannot participate in this program? Mr. BARR. It is my impression that there are some. We have a study going now, looking at this right at this moment. Mr. Muirhead might be able to say something on this. There are 600 credit unions participating at the moment in the program. Mr. MUIRHEAD. Before you are some amendments that would make it possible for credit unions to participate in the program. They have not participated in it very vigorously up to this juncture because of their own behavior and because they deal with persons from different States. Their procedure in some cases does not permit them to lend to residents of a particular State. The amendment before you that would permit providing a guarantee agency with funds that could deal with the interstate problem. Mrs. GREEN. Then, the position of both the Office of Education and Treasury is that all credit unions should be able to participate? Mr. BARR. Yes, Ma'am. To clarify the difficulty, the credit union in, say, Inland Steel, which has employees from Indiana, some possibly from Wisconsin, a lot from Illinois, and some from Michigan, can only lend to Indiana residents. The credit union is situated in the State of Indiana. One of the amendments before you would strike down that prohibition. I will proceed with my statement, Madam Chairman. Mr. GIBBONS. May I interrupt here, because I have another meeting that I have to attend. Your statement, as I read it, Mr. Secretary, is based upon the presumption that the cost of overhead service charges, to use the analogy of FHA or VA loan, that the cost on overhead is between a half or quarter of 1 percent? Mr. BARR. Yes. |