Word: ndea
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
Although he has asked that funds be slashed by only one-quarter in the coming year, the President would like to replace the NDEA loans with government-in-sured loans. He has proposed that the government guarantee loans which students would negotiate themselves through home town banks or state agencies. The government would pay all of the interest while the student is in college and part of it after he graduates, provided his family's income, figured on a complicated formula, is under $15,000. If the family's income exceeded that amount, the government would not subsidize the interest...
Johnson regards the change-over as a concession to thrift and good bookkeeping. Bankers, college administrators, and students with NDEA loans--the people most concerned with a switch in the procedure--are not as dispassionate. Forcing a student to obtain a loan from a hometown firm, they say, will create problems never encountered when all he had to do was walk to his college's financial aid office and sign a single form...
Because the neediest students would not be able to negotiate their own loans, the financial aid resources of many colleges would be severely strained. Harvard, with its enormous private loan funds, could stand by its students, but many small private colleges depend completely on NDEA money. Colleges like Radcliffe could no longer afford to admit great numbers of students with financial need. Northeastern, Boston University, and other colleges whose enrollments are drawn from lower-income families, would find that many of their students simply could no longer afford higher education...
Johnson has failed to realize that the proposed revisions would be more expensive than the present plan. Under the NDEA, the government is the banker; students get 90 per cent of their money from the government--the colleges put up the rest--and they repay the full amount after graduation. But under the guaranteed loan plan, the government would be subsidizing the interest on student loans and that money, paid to private banks or lending agencies, would never be returned to the government...
Guaranteed loans are simply not appropriate for the country's neediest college students, those whose families will be unable to negotiate loans privately; NDEA loans are easily accessible to the poorest. College administrators envision a two-headed federal loan program; they would like to retain National Defense loans, on a much smaller basis, and also establish a guaranteed loan program for middle-income families. If Congress wants to make the best--and today that unfortunately means the most costly--higher education available to rich and poor, it will follow the college's advice...