IN ADDITION TO THE PROBLEM OF LOAN ACCESS, NEITHER LOAN PROGRAM IS BASED SPECIFICALLY ON THE ACTUAL FINANCIAL NEED OF THE STUDENT IN ATTENDING THE INSTITUTION OF HIS OF HER CHOICE. UNDER THE GUARANTEED STUDENT LOAN PROGRAM, PRIVATE LENDERS CAN LEND UP TO $2500 TO ANYONE REGARDLESS OF ECONOMIC BACKGROUND OR THE ACTUAL COST OF ATTENDENCE AT A CHOSEN INSTI 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 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 OUR BLACK COLLEGES REMAINS EXTREMELY HIGH. THESE ARE INSTI- COSTS BECAUSE THEY SERVE LARGE NUMBERS OF LOW-INCOME STUDENTS FURTHER BURDEN THESE INSTITUTIONS WITH THE TASK OF LOAN COLLECTION, THEY HAVE NO REAL CONTROL. WITH RESPECT TO ANY LANGUAGE DEALING WITH THE ADMINISTRATIVE EXPENSES OF HIGHER EDUCATIONAL THE AVERAGE EXPENDITURES OF INSTITUTIONS AC IS 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 THE DEFAULT PROBLEM. 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, THE MEANS OF ALLEVIATING SUCH EXPENDITURES MORE OFTEN THAN NOT WORK TO THE DETRIMENT OF THOSE MOST DEPENDENT ON THE PROGRAM. I AM PLEASED TO LEND MY FULL SUPPORT TO S.1600 AND I URGE ITS INCLUSION INTO THE REAUTHORIZATION OF THE HIGHER EDUCATION ACT. 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 EDUCATION AND THESE PROBLEMS CONTINUE TO LINGER ON AT THE HIGHER EDUCATION LEVEL. THE TRIO PROGRAM PROVIDES A MECHANISM TO ADDRESS THESE PROBLEMS, WHILE EXPANDING ITS COVERAGE TO BOTH SECONDARY AND POSTSECONDARY EDUCATION. THE TRIO PROGRAMS HAVE BEEN AMONG THE MUST SUCCESSFULL OF MANY EFFORTS IN PROVIDING NEEDED EDUCATIONAL SERVICES FOR POOR AND EDUCATIONALLY DISADVANTAGED STUDENTS. THE IMPACT OF LONG RANGE ASSISTANCE WHICH TRIO PROVIDES IS VIRTUALLY IMMEASURABLE, AND HAS BEEN A MAJOR VEHICLE FOR DEALING WITH EDUCATIONAL INADEQUACIES. 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 LEGISLA TIVE PROPOSALS ASSOCIATED WITH THE TRIO PROGRAM. WITH THE |