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Isn't it nice to know...You can still count on NCB,
'the Community-Minded' Bank for...

STUDENT LOANS

(Undergraduate and Graduate schooling.)

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For more information or assistance, visit any one of our 9 offices listed:

BERGER COUNTY: Rutherford (2), Carlstadt (2), East Rutherford, Elmwood Park, Fair Lawn (4), Garfield, Lodi, Lyndhurst (2), Midland Park,
North Arlington (2), Oakland, Ridgefield (2), Ridgewood (2), Teaneck (2), Wallington (2). HUDSON COUNTY: Hartz Mountain, Secaucus. MORRIS
COUNTY: Dover (2), Boonton, East Hanover, Jefferson Township, Mine Hill, Mount Freedom, Randolph Township, Riverdale, Rockaway, Stirling
Passaic Township), Victory Gardens, Wharton PASSAIC COUNTY: Pompton Lakes. SUSSEX COUNTY: Andover Township, Franklin, Hamoton

11/28/79

Shoppe

Senator PELL. Our next witnesses will be a panel representing the Student Loan Marketing Association.

Mr. E. T. Dunlop, chairman of the board, Student Loan Marketing Association, Washington, D.C.; Mr. Edward A. Fox, president and chief executive officer, Student Loan Marketing Association, Washington, D.C.

If you gentlemen would come forward.

STATEMENTS OF DR. E. T. DUNLAP, CHAIRMAN OF THE BOARD, STUDENT LOAN MARKETING ASSOCIATION, WASHINGTON, D.C., AND EDWARD A. FOX, PRESIDENT AND CHIEF EXECUTIVE OFFICER, STUDENT LOAN MARKETING ASSOCIATION, WASHINGTON, D.C., A PANEL

Dr. DUNLAP. Chairman Pell, I am E. T. Dunlap, chairman of the board of directors of the Student Loan Marketing Association and chancellor of the Oklahoma State System of Higher Education. I have been in the higher education business for a number of years and have been actively involved in student loan programs from the time of the first National Defense Student Loan Program which was part of the 1958 act. In 1965, when the Higher Education Act was passed, title IV provided for loans to utilize private funds from banks and other private lenders with the Government guaranteeing the loan and paying the interest on the loans for certain students.

Then, in 1972, your committee and the Congress made provision and relief of the private lenders to release that paper to a secondary market and also to have the privilege of advances of funds to finance other loans.

I have become, through the years, a great believer, Senator, in the utilization of private funds from the banks and other private lenders who have funds to make available as opposed to the Congress appropriating funds to finance student loan programs, such as you have in 1958 to 1965, with some continuation of the NDSL, even up to now.

As I say, I have found that students are ready and eager to borrow from their bankers, and most of the banks, in our State at least and in the country generally, are inclined to be ready to assist the youth.

There are some banks who do not participate, who, as the gentleman who preceded us in testimony indicated, feel they can invest their funds in other kinds of investments with less effort to administer their investments.

Sallie Mae has been a great help to our banks and other private lenders as we administer the private funded student loan program. With me today is Mr. Ed Fox, the president of the Student Loan Marketing Association, who has been in this position since the corporation was authorized, organized, and placed into operation, about 1973. I would like to present him to you at this time for his statement, and then both of us will be available to respond to questions.

[The prepared statement of Mr. Dunlap follows:]

Isn't it nice to know...You can still count on NCB,
'the Community-Minded' Bank for...

STUDENT LOANS

(Undergraduate and Graduate schooling.)

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National Community Bank
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For more information or assistance, visit any one of our 49 offices listed:

BERGER COUNTY: Rutherford (2), Carlstadt (2), East Rutherford, Elmwood Park, Fair Lawn (4), Garfield, Lodi, Lyndhurst (2), Midland Park,
North Arlington (2), Oakland, Ridgefield (2), Ridgewood (2), Teaneck (2), Wallington (2). HUDSON COUNTY: Hartz Mountain, Secaucus. MORRIS
COUNTY Dover (2), Boonton, East Hanover, Jefferson Township, Mine Hill, Mount Freedom, Randolph Township, Riverdale, Rockaway, Stirling
Passaic Township), Victory Gardens, Wharton PASSAIC COUNTY: Pompton Lakes. SUSSEX COUNTY: Andover Township, Franklin, Hamoton

11620/79

"Shoppe

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Senator PELL. Our next witnesses will be a panel representing the Student Loan Marketing Association.

Mr. E. T. Dunlop, chairman of the board, Student Loan Marketing Association, Washington, D.C.; Mr. Edward A. Fox, president and chief executive officer, Student Loan Marketing Association, Washington, D.C.

If you gentlemen would come forward.

STATEMENTS OF DR. E. T. DUNLAP, CHAIRMAN OF THE BOARD, STUDENT LOAN MARKETING ASSOCIATION, WASHINGTON, D.C., AND EDWARD A. FOX, PRESIDENT AND CHIEF EXECUTIVE OFFICER, STUDENT LOAN MARKETING ASSOCIATION, WASHINGTON, D.C., A PANEL

Dr. DUNLAP. Chairman Pell, I am E. T. Dunlap, chairman of the board of directors of the Student Loan Marketing Association and chancellor of the Oklahoma State System of Higher Education. I have been in the higher education business for a number of years and have been actively involved in student loan programs from the time of the first National Defense Student Loan Program which was part of the 1958 act. In 1965, when the Higher Education Act was passed, title IV provided for loans to utilize private funds from banks and other private lenders with the Government guaranteeing the loan and paying the interest on the loans for certain students.

Then, in 1972, your committee and the Congress made provision and relief of the private lenders to release that paper to a secondary market and also to have the privilege of advances of funds to finance other loans.

I have become, through the years, a great believer, Senator, in the utilization of private funds from the banks and other private lenders who have funds to make available as opposed to the Congress appropriating funds to finance student loan programs, such as you have in 1958 to 1965, with some continuation of the NDSL, even up to now.

As I say, I have found that students are ready and eager to borrow from their bankers, and most of the banks, in our State at least and in the country generally, are inclined to be ready to assist the youth.

There are some banks who do not participate, who, as the gentleman who preceded us in testimony indicated, feel they can invest their funds in other kinds of investments with less effort to administer their investments.

Sallie Mae has been a great help to our banks and other private lenders as we administer the private funded student loan program. With me today is Mr. Ed Fox, the president of the Student Loan Marketing Association, who has been in this position since the corporation was authorized, organized, and placed into operation, about 1973. I would like to present him to you at this time for his statement, and then both of us will be available to respond to questions.

[The prepared statement of Mr. Dunlap follows:]

Isn't it nice to know...You can still count on NCB,
'the Community-Minded' Bank for...

STUDENT LOANS

(Undergraduate and Graduate schooling.)

[graphic]

*

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