those problems dealing particularly with administrative structure and administrative processing and reporting.

In carrying out the objectives of the task statement, several major approaches were used:

1. Questionnaires were sent to the various groups concerned with the Federal student loan programs.

a. Questionnaire to 2,444 colleges and universities. Of the 2,193 eligible to reply, 1,671 or 76 percent responded. These replies included 946 or 85 percent of the accredited 4-year colleges and universities (see app. B).

b. Questionaire to 2,112 lending institutions. Sixty-four percent or 1,388 responded. Of the respondents, 676 or 49 percent participated in the guaranteed loan program. Out of these 676 participants, the responses from 643 were received in time to be tabulated (see app. C).

c. Questionnaire to 325 vocational schools. Of the 276 eligible to reply, 160 or 58 percent responded (see app. D).

d. Questionnaire to 195 institutions eligible to participate in the health professions student loan program, of which 162 or 84 percent responded (see app. E).

e. Questionnaire to 532 nursing schools, including the baccalaureate, associate degree, hospital diploma, and graduate program schools, eligible to participate in the nursing student loan program. Of the 430 eligible to reply, 278 or 64 percent did so (see app. F).

2. Personal interviews were held with the staffs of 47 State guarantee agencies. The States excluded were Alaska, Hawaii, and New Mexico (see app. G).

3. Seven in-depth, 1-day discussions were held in San Francisco, Calif.; Denver, Colo.; Chicago, Ill.; Raleigh, N.C.; Harrisburg, Pa.; and Syracuse and New York, N.Y. Each of these meetings was attended by 10 to 20 representatives of colleges and universities, lending institutions, State agencies, and State commissions (see app. H).

4. An advisory committee, the members of which are listed at the beginning of this report, was appointed to assist the study director in the analysis of the result of the various questionnaires, interviews, and staff findings. All the major questions were referred to this committee. It was not asked to vote on any of the questions, but there appeared to be general consensus on the great majority of questions. The advisory committee met twice, in October and December.

5. Innumerable meetings were held with consultants and advisers particularly knowledgeable in certain aspects of the programs under study or in the conduct of the study. The names of these consultants and advisers are listed at the beginning of this report. Certain additional conferences are listed in appendix J. As part of this overall study of Federal loan programs, the College Entrance Examination Board subcontracted with the Bureau of Applied Social Research of Columbia University to do an exploratory small-scale followup study of graduates who borrowed under the national defense student loan program. At the time this study report was prepared, the pilot study was not completed. Its results have been made.

available subsequently so that they have been appended as chapter XII of this report.

The material in this report falls into four major divisions.

1. Chapter II; the importance of the Federal loan program in relation to all Federal student aid, to total student aid, and to total student educational expenses.

2. Chapter III; a summary of the findings and recommendations of this study.

3. Chapters IV through VIII; discussions relating to the six individual loan programs, leading to the recommendations summarized in chapter III.

4. Chapters IX through XII; discussions relating to problems affecting most or all of the six individual loan programs, leading to the recommendations summarized in chapter III.

The member colleges, universities, secondary schools, and associations of the College Entrance Examination Board do not necessarily endorse the findings and recommendations of this study. The contents of this report are the responsibility of the study director.

II. SUMMARY OF FEDERAL AND TOTAL STUDENT FINANCIAL AID, FISCAL YEAR 1967

A. FEDERAL STUDENT FINANCIAL AID

Student financial aid funds from Federal and federally assisted programs were estimated at $1,581 million in fiscal year 1967. This total is composed of $930 million in grants (59 percent), $150 million in employment (9 percent), and $502 million in loans (32 percent). (See table 1.)

This total represented a substantial increase of $575 million, or approximately 57 percent, over fiscal year 1966. Almost the entire increase was caused by five factors: (1) the new GI bill ($216 million); (2) the first full year of operation of the guaranteed loan program (up $170 million); (3) training grants and fellowships (up $100 million); (4) the new educational opportunity grants program ($46 million); (5) the college work-study program (up $28 million). The $1,581 million of federally assisted student financial aid in fiscal year 1967 was 412 times as much as the estimated total of $346 million in fiscal year 1961.

Slightly more than one-half of the $1,581 million from federally assisted programs went to undergraduates, and slightly less than one-half to graduate students. The huge part of the awards to graduate students, estimated at 89 percent, was in the form of grants (but more than one-third of these grants represented tuition paid by the Federal Government for its own employees' studies). The awards to undergraduates were 52 percent in loans, 31 percent in grants, and 17 percent in employment.

As shown in table 1, almost one-half of the $502 million in loans was made available under the guaranteed loan program. This program went through its first full year of operation in fiscal year 1967, but some of the States did not start to participate until the year was well underway. It provided $248 million to 328,900 students for an average loan of $750. The national defense student loan program in the same year provided $218 million to 394,000 students for an average loan of $553.

B. TOTAL STUDENT FINANCIAL AID

It has been estimated that total financial aid to students at all institutions of higher education during fiscal year 1967 was roughly $2,242 million. This total is broken down as follows:

TABLE 1.-STUDENT FINANCIAL AID FUNDS FROM FEDERAL AND FEDERALLY ASSISTED PROGRAMS, FISCA

1 Program Planning and Budgeting Section, and Division of Student Financial Aid, U.S. Office of Education, December 1967.

2 Program Administration Division, Veterans' Administration, December 1967

Office of Program Planning and Evaluation, U.S. Office of Education, December 1967.

Includes $232,000,000 paid by Federal Government in tuition for its own employees' studies.

$ Division of Student Financial Aid, U.S. Office of Education, October 1967.

• Public Health Service, December 1967.

Note: Guaranteed loan funds actually come from private lenders; the interest is subsidized by the U.S. Office of Education. College work-study and all loans except guaranteed and Cuban include 10 percent in matching funds from the institution of higher education. National defense student loan includes funds from repayments of previous borrowers.

A further breakdown of this total (table 2) reflects the distribution of total student aid: 60 percent for grants, 16 percent for employment, and 24 percent for loans. Aid to undergraduate students was made up of 44 percent in grants, 24 percent in employment, and 32 percent in loans. Graduate students fared twice as well in grants, which made up 87 percent of their assistance; employment supplied 2 percent and loans the remaining 11 percent of the total aid to graduate students. Total student financial aid, 6 years earlier in fiscal year 1961, was estimated at $716 million, or about 32 percent of the fiscal year 1967 estimate. Federally assisted programs of $346 million in fiscal year 1961 constituted 48 percent of the total aid at that time, compared to 71 percent in fiscal year 1967.

In other words, while total student financial aid increased by 225 percent during the 6 years from fiscal year 1961 through fiscal year 1967, its major component of federally assisted programs increased by 360 percent.

C. TOTAL STUDENT EDUCATIONAL EXPENSES

In the fall of 1966, there were approximately 4.5 million full-time students enrolled in institutions of higher education. To determine their total tuition and fee charges, the U.S. Office of Education estimates of the weighted average tuition and fee charges in 1964-65 were increased 7 percent per year, resulting in estimated average charges in 1966-67 ranging from an average of $115 in public 2-year institutions to an average of $1, 275 in private 4-year institutions. As shown