1/ Funds are distributed to the 50 States, D.C., and Puerto Rico based
on: (1) $1,500 multiplied by the number of scholarships (based on
the 5- to 17-year-old population in the State); plus (2) an adminis-
trative allowance equal to $10,000 plus 5 percent of the amount
to which the State is eligible under (1).

175

1/ Funds are distributed to the 50 States, D.C., Puerto Rico, and the Territories on the basis of the State population.

177

TUESDAY, APRIL 12, 1988.

HIGHER EDUCATION FACILITIES LOAN PROGRAMS

WITNESSES

KENNETH D. WHITEHEAD, ACTING ASSISTANT SECRETARY FOR POSTSECONDARY EDUCATION

DAVID T. DEXTER, DIRECTOR, CREDIT MANAGEMENT IMPROVEMENT STAFF, OFFICE OF MANAGEMENT

SALLY H. CHRISTENSEN, DIRECTOR, BUDGET SERVICE, OFFICE OF PLANNING, BUDGET AND EVALUATION

SALLY K. KIRKGASLER, DIRECTOR, POLICY DEVELOPMENT STAFF, OFFICE OF POSTSECONDARY EDUCATION

JOHN S. HAINES, DIRECTOR, POSTSECONDARY ANALYSIS DIVISION, OFFICE OF PLANNING, BUDGET AND EVALUATION

Mr. NATCHER. Now we take up next the funding for Higher Education Facilities Loan Programs. We have before the committee Mr. Kenneth D. Whitehead, the Acting Assistant Secretary for Postsecondary Education.

Mr. Whitehead, before you give us your statement, tell us who you have with you at the table.

Mr. WHITEHEAD. I have at the table, Mr. Chairman, Mr. David T. Dexter, Director, Credit Management Improvement Staff, Office of Management in the Department. I have Sally Kirkgasler, Director, Office of Policy Development, Office of Postsecondary Education, on my staff.

I have John S. Haines, Director of the Postsecondary Analysis Division, Office of Planning, Budget and Evaluation of the Department, and I have Sally H. Christensen, Director of Budget Service, Office of Planning, Budget and Evaluation in the Department.

Mr. NATCHER. Thank you very much. Now, Mr. Whitehead, we will be pleased to hear from you.

Mr. WHITEHEAD. Mr. Chairman, thank you for the opportunity to present the fiscal year 1989 budget request for the three accounts which support through direct loans and other activities the reconstruction, renovation and construction of higher education facilities. These accounts are Higher Education Facilities Loans, and College Housing Loans, and College Housing and Academic Facilities Loans.

Mr. Chairman, I ask that my prepared statement be submitted for the record, and I will briefly summarize our presentation today. In the coming fiscal year, we are requesting an appropriation for only one of these accounts: The College Housing and Academic Facilities Loans, for which $1,700,000 is requested. We are not requesting any authority to make new loan commitments.

We are making the request under the College Housing and Academic Facilities account in order to make up for the shortfall of

84-626 0-88-37

the interest rates. We are borrowing money from the Treasury to cover current loans at a higher rate than the loans are made for and, therefore, we have to make this request to cover that shortfall.

That is the extent of my formal statement, Mr. Chairman. We will open this up for questions.

[The prepared statement and biography of Kenneth D. Whitehead follow:]