IN ADDITION TO THE PROBLEM OF LOAN ACCESS, NEITHER LOAN PROGRAM IS BASED SPECIFICALLY ON THE ACTUAL FINANCIAL NEED CHOICE. OF THE STUDENT IN ATTENDING THE INSTITUTION OF HIS OF HER TUTION. THE AMOUNT OF THE NATIONAL DIRECT STUDENT LOAN IS USUALLY MUCH SMALLER AND IS DEPENDENT UPON A VARIETY OF FACTORS, INCLUDING THE RELATIVE DEMANDS OF OTHER STUDENTS ON CAMPUS. THE NATIONAL STUDENT LOAN REFORM ACT WOULD ELIMINATE THE PROBLEMS OF LOAN ACCESS BY ASSURING THAT EVERY STUDENT IN NEED OF A LOAN TO COMPLETE A COMPREHENSIVE FINANCIAL AID PACKAGE WILL RECEIVE ONE. UNLIKE THE CURRENT PROGRAMS, THE NEW PROGRAM WOULD BE ENTIRELY NEED-BASED, THUS GUARANTEEING THAT NO STUDENT WILL BE DENIED ACCESS TO HIGHER EDUCATIONAL OPPORTUNITIES ON THE BASIS OF BEING UNABLE TO SECURE AN ADEQUATE LOAN. THE NATIONAL STUDENT LOAN REFORM ACT RECOGNIZES THE IMPORTANCE OF THE CAMPUS BASED APPROACH TO STUDENT FINANCIAL AID PACKAG ING, WHILE MAKING NEEDED REFORMS IN CURRENT DISTRIBUTION AND OVER THE ALARMING DEFAULT RATES THAT THE NATIONAL DIRECT STUDENT LOAN PROGRAM HAS EXPERIENCED. I BELIEVE THAT THE DEFAULT PROBLEM IS WISELY DEALT WITH IN S.1600 BY PLACING THE COLLECTION OF LOANS IN THE HANDS OF FINANCIAL EXPERTS RATHER THAN EDUCATIONAL INSTITUTIONS, FACILITATING THE CONSOLIDATION OF LOANS, AND LIBERALIZING THE STRINGENT REPAYMENT SCHEDULES OF THE PROGRAMS CURRENTLY IN EXISTENCE. THE DEFAULT RATE ON DIRECT STUDENT LOANS AT MANY OF COSTS BECAUSE THEY SERVE LARGE NUMBERS OF LOW-INCOME STUDENTS RECEIVING A VARIETY OF FEDERAL AID. THERE IS NO REASON TO THE AVERAGE EXPENDITURES OF INSTITUTIONS AT S REFLECTED IN SECTION 484 OF H.R. 5192. THE FLEXIBILITY WITH WHICH S. 1600 ADDRESSES TERMS OF LOAN REPAYMENT IS A VAST IMPROVEMENT OVER THE CURRENT SITUATION. ALLOWING THE STUDENT TO OPT FOR A GRADUATED REPAYMENT PLAN OVER STRAIGHT MORTGAGE PAYMENTS REALISTICALLY DEALS WITH THE NORMAL INCREASE IN INCOME THAT MOST INDIVIDUALS ENJOY AS THEIR YEARS AWAY FROM SCHOOL INCREASE. THE LEGISLATION ALSO RECOGNIZES THAT FOR LOW-INCOME INDIVIDUALS IT MAY BE NECESSARY TO EXTEND THE REPAYMENT PERIOD OVER A GREATER TIME. I BELIEVE THAT BOTH THESE PROVISIONS, BEYOND ADDRESSING THE PAR THE NATIONAL STUDENT LOAN REFORM ACT WILL REPLACE A POORLY TARGETED SYSTEM WHICH IS CURRENTLY INADEQUATE IN MEETING THE NEED TO ASSURE ACCESS TO NECESSARY LOAN CAPITAL FOR ALL STUDENTS, TICULARLY THOSE MOST IN NEED. IT WILL REPLACE A SYSTEM THAT IS BECOMING INCREASINGLY EXPENSIVE TO THE FEDERAL GOVERNMENT, THE COST OF WHICH WILL RISE FURTHER IF WE ARE TO CONTINUE TO MAKE THE GUARANTEED LOAN PROGRAM ATTRACTIVE TO PRIVATE LENDERS AND HOLD DOWN THE INTEREST RATE OF THE DIRECT STUDENT LOAN PROGRAM TO THREE PERCENT. I AM CONVINCED THAT A MORE FINANCIALLY STABLE SYSTEM WHICH WILL ASSURE EQUITABLE AVAILABILITY AND DISTRIBUTION OF LOAN CAPITAL TO NEEDY STUDENTS IS PREFERABLE TO AN INADEQUATE PROGRAM WITH AN INTEREST RATE HOPELESSLY OUT OF DATE AND EXCEEDINGLY COSTLY TO THE TAXPAYER. MOREOVER, WE HAVE LEARNED FROM EXPERIENCE THAT ONCE WE ARE CONFRONTED WITH PROGRAM COSTS WHICH ARE UNACCEPTABLE, URGE ITS INCLUSION INTO THE REAUTHORIZATION OF THE HIGHER EDUCA- TITLE IV - STUDENT FINANCIAL AID - TRIO AN ESSENTIAL COMPONENT OF TITLE IV, STUDENT ASSISTANCE, ARE THOSE PROGRAMS WHICH AID LOW INCOME AND EDUCATIONALLY DISADVANTAGED STUDENTS. SPECIAL PROGRAMS FOR STUDENTS FROM DISADVANTAGED BACKGROUNDS, COMMONLY REFERRED TO AS THE TRIO PROGRAMS WERE DESIGNED TO INCREASE THE ENROLLMENT OF LOW INCOME STUDENTS BY PROVIDING EQUAL EDUCATIONAL OPPORTUNITIES. THE TRIO PROGRAMS PROVIDE ACADEMIC SUPPORT SERVICES TO BRIDGE MANY OF THE GAPS LOW INCOME STUDENTS FACE DUE TO INADEQUATE SCHOOL PREPARATION AND LACK OF EXPOSURE TO EDUCATIONAL SYSTEMS OR THE LACK OF FINANCIAL RESOURCES. DISADVANTAGED YOUTH FACE MANY SERIOUS PROBLEMS IN ELEMENTARY AND SECONDARY THE TRIO PROGRAMS HAVE BEEN AMONG THE MUST SUCCESSFULL OF THE ROLE OF THE TRIO PROGRAMS IN PROVIDING ACCESS TO HIGHER EDUCATION FOR MINORITIES AND LOW INCOME YOUNGSTERS WHO MIGHT OTHERWISE FAIL TO QUALIFY FOR ADMISSION IS INDEED QUITE SIGNIFICANT. MY WRITTEN STATEMENT INCLUDES EXTENSIVE DOCUMENTATION OF THE CRITICAL IMPORTANCE OF THE TRIO PROGRAMS IN PROVIDING GET POPULATION. FOR WELL OVER A YEAR NOW, I HAVE BEEN WORKING ON LEGISLATIVE PROPOSALS ASSOCIATED WITH THE TRIO PROGRAM. WITH THE ASSISTANCE OF MEMBERS OF THE HOUSE EDUCATION AND LABOR COMMITTEE, EDUCATION COALITIONS AND OTHERS INVOLVED WITH EDUCATIONAL ISSUES, I HAVE DEVISED A SOUND, CONSISTENT AND WORKABLE PROGRAM DESIGNED TO INCREASE THE ENROLLMENT WELL ABOVE THE PARTICIPATION RATE UNDER THE CURRENT LANGUAGE. GENERALLY, MY PROPOSAL FOLLOWS THE FORMAT FOR PROGRAMS INCORPORATED IN H.R.5192, WITH ONE MAJOR EXCEPTION. WHILE I HAVE ADOPTED THE 150% ELIGIBILITY CRITERIA FOR THE PROPORTIONAL MIXTURE OF LOW INCOME AND EDUCATIONALLY DISADVANTAGED STUDENTS UNDER THE RESPECTIVE PROGRAMS, I HAVE BEEN UNABLE TO ENDORSE THE FIRST GENERATION ELIGIBILITY CONCEPT. LET ME POINT OUT TO YOU SOME OF THE PROBLEMS RELATED TO THE USE OF THE FIRST GENERATION CONCEPT. THE ADMINISTRATIVE COMPLEXITIES ASSOCIATED WITH THE USE OF THE FIRST GENERATION CONCEPT WOULD RESULT IN UNCLEAR JUSTIFICATION, VALIDATION AND DEFINITION. ON THE OTHER HAND, BY DEFINING THE ELIGIBILITY CRITERIA AS 150% OF THE POVERTY LEVEL, WHICH MY PROPOSAL INCLUDES, LOW INCOME CLEARLY MEANS THAT A TRIO APPLICANT'S FAMILY IS NOT IN POSSESSION OF MUCH WEALTH, WHICH PRECISELY TARGETS THE CONSTITUENCY TO BE SERVED. THE PAPERWORK NECESSARY TO EFFECTIVELY MANAGE THE FIRST GENERATION REQUIREMENT WOULD NECESSITATE EXPLAINING THE MEANING OF THE TERM AND CONVINCING APPLICANTS OF THE NEED TO REVEAL INFORMATION ON PARENTAL |