Packer, Joel, legislative director, U.S. Student Association, Washington, D.C.; Nelson, James E., vice president of College Board and College Scholarship THURSDAY, OCTOBER 25, 1979 Kaysen, Dr. Carl, vice chairman and director of research, the Sloan Commis- 419 486 584 611 685 FRIDAY, NOVEMBER 9, 1979 Lauve, Ronald F., associate director, Human Resources Division, General Beaudet, Raymond A., associate director, Audit Agency, Office of Inspector STATEMENTS Allen, Dr. Van, executive director, Tactics, Washington, D.C.: Dr. Fred Patter- 714 738 767 772 772 304 Beaudet, Raymond A., associate director, Audit Agency, Office of Inspector 767 37 Prepared statement 45 Berry, Dr. Mary F., Assistant Secretary for Education; Dr. Alfred L. Moye, 738 Prepared statement 744 Betterton, Don M., director of undergraduate financial aid, Princeton University, prepared statement... 234 Brugel, John F., director, Office of Student Aid, Pennsylvania State University, prepared statement..... 572 Chisholm, Hon. Shirley, a Representative in Congress from the State of New 11 Prepared statement 17 Coalition of Independent College and University Students, Steve Leifman, national director, prepared statement. 471 Commission of Independent Colleges and Universities, Henry Paley, president, prepared statement.... 336 Consortium on Financing Higher Education, prepared statement 93 Coor, Dr. Lattie F., president, University of Vermont, Burlington, Vt.; Dr. Prepared statement Page 279 281 Davidson, James M., vice president and senior installment loan officer, National Community Bank of New Jersey, Maywood, N.J., representing the American Bankers Association... 186 Prepared statement 191 Dickinson, Eileen D., executive director, New York State Higher Education 109 Prepared statement 114 Dunlap, Dr. E. T., chairman of the board, Student Loan Marketing Associ- Evans, Jay, Pennsylvania Higher Education Assistance Agency, Harrisburg, 199 200 486 212 Fox, Edward A., president and chief executive officer, Student Loan Marketing Association, prepared statement. Gordon, Margaret S., associate director, Carnegie Council on Policy Studies and Higher Education, Berkeley, Calif. 685 Prepared statement 690 Irwin, David M., executive vice president, Washington Friends of Higher Education, Seattle, Wash.; and Henry Paley, president, Commission of Independent Colleges and Universities, State of New York, Albany, N.Y., panel Prepared statement Johnstone, Dr. D. Bruce, president, Buffalo State College, Buffalo, N.Y. a 317 320 71 74 Kaysen, Dr. Carl, vice chairman and director of research, the Sloan Commission on Government and Higher Education, Cambridge, Mass., accompanied by Kenneth M. Deitch, senior member, research staff. 611 Prepared statement 675 Kornfeld, Leo, former deputy commissioner of education for student financial assistance, Princeton, Ñ.J. 100 Lauve, Ronald F., associate director, Human Resources Division, General 714 718 Martin, Dr. Dallas, executive director, National Association of Student Finan- 357 Martin, Dallas, executive director, National Association of Student Financial Aid Administrators, Washington, D.C., William Nester, director, student financial assistance, New Jersey Higher Education Loan Authority, Trenton, N.J; Carol Wennerdahl, director, State student loan programs, Illinois guaranteed loan program, Deerfield, Ill.; Donald Betterton, director, student aid office, Princeton University, Princeton, N.J.; and Joel Packer, legislative director, U.S. Student Association, Washington, D.C., a panel........ Morrissey, Kermit C., president, Boston State College, prepared statement. Moynihan, Hon. Daniel Patrick, a U.S. Senator from the State of New York.... Prepared statement Mundel, David S., assistant director, human resources and community development, Congressional Budget Office, Washington, D.C., accompanied by Alfred Fitt, General Counsel, Congressional Budget Office; David Longanecker, analyst, Human Resources and Community Development Division, Congressional Budget Office; and Deborah Kalcevic, analyst, Budget Analysis Division, Congressional Budget Office..... Prepared statement National Association of Independent Colleges and Universities, Melvin Nelson, James E., vice president of College Board and College Scholarship Prepared statement 360 216 288 342 347 135 142 294 584 587 Page Nester, William C., director, New Jersey Higher Education Assistance Authority, prepared statement.. New Jersey Department of Higher Education, Haskell Rhett, assistant chan- Packer, Joel, legislative director, U.S. Student Association, Washington, D.C.; Prepared statement Reeher, Kenneth R., president, National Association of State Scholarship and Grant Programs, executive director, Pennsylvania Higher Education Assistance Agency, prepared statement... Robinson, Dr., Prezell L., president, St. Augustine's College, Raleigh, N.C.; secretary of board of directors, National Association for Equal Opportunity in Higher Education. Prepared statement Shaw, Dr. Kenneth A., chancellor, Southern Illinois University, Carbondale, Prepared statement Swearer, Dr. Howard, president, Brown University, Providence, R.I.............. 242 565 419 422 489 25 59 62 87 93 U.S. Association of Evening Students, Anthony F. Farma, president, prepared statement. 482 ADDITIONAL INFORMATION Articles, publications, etc.: "Medical Schools Found Admitting Fewer Lower-Middle Income Students," by Gene I. Maeroff, from the New York Times, September 30, 1979 230 Purpose, function, and operating progress, a statement of, from the Student Loan Marketing Association. 260 Recommendations for reauthorization of the Higher Education Act, from 381 613 453 "Target Report No. 12-Sub-Minimum Wage," by David Patterson and Bruce Horowitz, from NSA-NSL Coalition. 435 Communications to: Fenwick, Hon. Millicent, a Representative in Congress from the State of Pell, Hon. Claiborne, chairman, Subcommittee on Education, Arts and Williams, Hon. Harrison A., Jr., a U.S. Senator from the State of New Dedmon, Donald N., president, Radford University, Radford, Va., Thompson, W. Fred, member of Congressional Liaison Committee of Questions and answers: Congressional Budget Office responses to questions 249 771 274 273 176 Selected charts: Comparison between student loan rates and treasury bond rates (calendar years 1958-79).. 58 Selected tables: Breakdown of seven current student loan programs Comparative cost estimates for student loan programs.... Five-year cost projections of student loan programs (in billions of dollars). HIGHER EDUCATION AMENDMENTS OF 1979 WEDNESDAY, OCTOBER 10, 1979 U.S. SENATE, SUBCOMMITTEE ON EDUCATION, ARTS AND HUMANITIES, OF THE COMMITTEE ON LABOR and Human RESOURCES, Washington, D.C. The subcommittee met, pursuant to notice, at 9:30 a.m., in room 1318, Dirksen Senate Office Building, Senator Claiborne Pell (chairman of the subcommittee) presiding. Present: Senators Pell, Kennedy, Javits, and Stafford. OPENING STATEMENT OF SENATOR PELL Senator PELL. The subcommittee will come to order. At the request of one of my colleagues, we have opened early at 9:30. And today we will continue our hearings on the reauthorization of the Higher Education Act. Our focus the next 2 days will be on student loan programs. There are several proposals pending to revise the existing loan programs. Without prejudging any of them, we are looking for several features to be contained in any revision of student loans. First, I would like to see a loan program that is available to any student who seeks a loan. Second, I would like to see a program administered in such a way that defaults are no longer a major scandal and ripoff on the taxpayer. Third, I would like to see a loan program that has a realistic payback provision so that a young student fresh out of college is not swamped with debts. And finally, I would like to see a loan program that has borrowing limits more in tune with the cost of postsecondary education. Obviously, preferable to any loan program is a grant program. That is why we have pursued the basic grants, created it and pursued it, as we have. But I recognize that to supplement the grant program there must also be a loan program. Today we will be examining one of the pending proposals, S. 1600, the Kennedy-Bellmon bill. We will then hear from several witnesses who will give us their insight into as many of the pending proposals as possible. Our first witnesses today will be a panel on S. 1600. And as some of you know, we are pressed for time. We are going to try doing it this morning without the bells and the light system, but would hope that the various witnesses would keep to 5 minutes in their presentation. The full statement of every witness will be put in the record. (1) Senator Bellmon I do not think is here yet. Representative Chisholm? Not here. Dr. Swearer? Dr. Kenneth Shaw? Could he come forward, please? Dr. Bruce Johnstone? Could he come forward, please? And President Prezell Robinson. If those three could come forward and we could get started, I think it would be helpful. Which one of you would like to start out? Alphabetical or reverse alphabetical or age? There is only one man with white hair. That is Dr. Robinson. And being old myself, I have sympathy to him. Dr. Robinson. STATEMENT OF DR. PREZELL L. ROBINSON, PRESIDENT, ST. Dr. ROBINSON. Thank you very much, Mr. Chairman. My name is Prezell Robinson. I am president of St. Augustine's College of Raleigh, N.C., and secretary of the Board of Directors of the National Association for Equal Opportunity in Higher Education, whose acronym is NAFEO. Today I appear before you on behalf of NAFEO. NAFEO is the membership organization of 107 historically and predominantly black colleges and universities. These colleges enroll more than 200,000 students and continue to account for approximately onehalf of the black recipients of baccalaureate degrees. I thank you, Mr. Chairman, for this opportunity to comment on various proposals concerning student financial aid, particularly student loans. Consistently, in testimony before congressional committees, we have stressed the importance of increasing the flow of students from low-income families into the mainstream of society. Not too long ago, one of my colleagues stressed before this committee the importance of funding higher education for needy students. Our position was then and is now that no civilization has long flourished that has catered only to the privileged few. We know that by bringing into the mainstream of our society through the higher education the sons and daughters of the poor, we strengthen the economic base of our Nation. We utilize otherwise underutilized talent to serve and resolve the problems of our Nation. We avoid the discord and the threats to the tranquility of our society that inevitably result when hordes of people are dispossessed. By expanding opportunities, we give hope and encouragement to our general populace to work toward the realization of the American dream and in so doing elevate our Nation as a beacon light that guides and inspires the poor and the needy of the entire world. Mr. Chairman, in most NAFEO institutions 80 to 90 percent of the students are needy. Indeed, recent census data indicate that three-fourths of the students at historically black colleges split almost evenly between homes with families of income under $5,000 and those with incomes from $5,000 to $10,000 annually. We feel, accordingly, well qualified to comment on student financial aid programs from the vantage point of the low-income student. |