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Agencies typically seek quarterly reimbursement equal to 1% of new loan volume, but the Education Department has held up funding despite congressional intent. Officials cite regulatory discretion, while House and Senate staff demand a final response as uncertainty harms agency operations, including budgets where allowances may reach 65%.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/agenci-es-continue-the-long-wait-for-administrative-cost-allowances-agencies-continue-the-long-wait-for-administrative-cost-allowances/416302/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/agenci-es-continue-the-long-wait-for-administrative-cost-allowances-agencies-continue-the-long-wait-for-administrative-cost-allowances/416302.png","ImageObject",300,407,{"name":92,"@type":93},"Oliver","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-09-28",true,{"@type":102,"interactionType":103,"userInteractionCount":24},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What is the main issue affecting state student loan guarantee agencies in fiscal 1985?","Question",{"text":112,"@type":113},"Federal payments for administrative cost allowances have not been made, leaving agencies waiting without a clear end date.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How are administrative cost allowances calculated and requested under the Guaranteed Student Loan program?",{"text":117,"@type":113},"Agencies can apply quarterly for reimbursement, receiving an amount equal to 1% of their new loan volume if their justifications are approved.",{"name":119,"@type":110,"acceptedAnswer":120},"Why do state agencies believe the delay is unfair, and what are lawmakers asking for?",{"text":121,"@type":113},"Agencies say they had no notice that payments would not occur, and House and Senate staffers want a final response from the Education Department about whether the payments will be made.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},416302,1791320999,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":24,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":34,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},8796095461610,"https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c","Vol.13,No.171  \n# AGENCIES CONTINUE THE LONG WAIT FOR ADMINISTRATIVE COST ALLOWANCES\n\nFor state student loan guarantee agencies,the long wait for federal payment ofadministrative cost allowances for fiscal 1985 continues,with no end in sight.  \nMoreover,the wait for administrative cost allowances drags on despite the\"clear intent\"of Congress to have the funds disbursed,according to NationalCouncil of Higher Education Loan Programs(NCHELP)staff director JeanFrohlicher.Quarterly payments have not been made since last October,shesaid.  \nTo assist state agencies in covering administrative expenes associated withthe Guaranteed Student Loan(GSL)program,the federal government has paidagencies an amount equal to 1 percent of their new loan volume.  \nUnder the program,agencies have been able to apply quarterly for reimbursementand,providing their justifications were considered worthy,have received thatamount.  \nMore Important To Some StatesCost allowance funds are used by the agen-cies for general purposes and are especially important to the youngest stateagencies with modest loan volume and little funds in reserve,Frohlicher said.  \n\"In some states,[cost allowance]is 65 percent of their operating budget,\"sheadded.  \nThis year,the Education Department has held up the funding process.As theloan volume has increased,the program has become increasingly expensive.Infiscal 1983,ED paid $53.2 million in cost allowances.  \nCongress included funds for state agency allowances when it passed its fiscal1985 budget,but ED has tried to scuttle the payments,according to stateagency officials.  \nThe Reagan administration attempted to quash allowance payments in its fiscal1985 supplemental budget request and in its 1986 budget proposal.Under itsplan,ED budget documents said the payments should be repealed and no newallowances paid in 1985.  \nSuch a policy,along with other changes in GSL,would\"provide more equitablecost-sharing between the federal government and the state level agencies,\"according to the budget documents.  \n\"They would also provide greater incentive for administrative cost reductionand for default prevention and collection,\"the documents add.(more)  \n# AGENCIES CONTINUE THE LONG WAIT FOR ADMINISTRATIVE COST ALLOWANCES(Cont.)\n\nCongress,however,did not ki11 funds for the cost allowances in its supple-mental budget,and ED's funding request for 1986 is still up in the air.  \nBut,Frohlicher says,ED has continued to hold up the payments,contending ithas a certain amount of discretion under the regulations,as opposed to suchpayments as special allowances that were entitlements and had to be paid.  \n\"We had all assumed it was just late because the department has always beenlate in its payments to us,\"Frohlicher said.\"Now,from our point of view,the unfairness is that nobody has had any notice [from ED]that these paymentswould not occur.\"  \nHouse and Senate staffers are concerned about the lack of payment.\"What weneed to do is get some final response from ED,\"said Thomas Wolanin,staffdirector for the House Postsecondary Education Subcommittee.\"Nobody has heardif they are,in fact,not going to pay the cost allowances.\"  \nED officials have remained steadfastly silent about the department's futureplans for the payments,as well as the reasoning behind the current delay.  \n\"We can only say 'no comment'at this time,\"said Sharon Messinger,spokeswomanfor C.Ronald Kimberling,acting assistant secretary for postsecondaryeducation.  \nNo comment is not good enough for the state agencies.\"The Education Depart-ment has said we should look for other funds,\"Frohlicher said.\"When [EDUndersecretary]Gary Bauer says we should look for other sources of funding,well .there aren't any other sources of funding.\"--Bill Reinhard  \n# NEW JERSEY OFFERS STUDENT LOANS TO SWELL TEACHER RANKS\n\nTo make teaching more attractive to good students,New Jersey has joined 43other states in offering virtually debt-free student loans to those who agreeto teach in the state after college. ","cbCaic2moP78EMzg","https://ap.wps.com/l/cbCaic2moP78EMzg","pdf",1787503,"English","# AGENCIES CONTINUE THE LONG WAIT FOR ADMINISTRATIVE COST ALLOWANCES\n## Ongoing delay and federal payment issues\n## Congressional funding and federal discretion\n# NEW JERSEY OFFERS STUDENT LOANS TO SWELL TEACHER RANKS\n## Teacher Scholars Program terms\n## Eligibility requirements and repayment/forgiveness","[{\"question\":\"What is the main issue affecting state student loan guarantee agencies in fiscal 1985?\",\"answer\":\"Federal payments for administrative cost allowances have not been made, leaving agencies waiting without a clear end date.\"},{\"question\":\"How are administrative cost allowances calculated and requested under the Guaranteed Student Loan program?\",\"answer\":\"Agencies can apply quarterly for reimbursement, receiving an amount equal to 1% of their new loan volume if their justifications are approved.\"},{\"question\":\"Why do state agencies believe the delay is unfair, and what are lawmakers asking for?\",\"answer\":\"Agencies say they had no notice that payments would not occur, and House and Senate staffers want a final response from the Education Department about whether the payments will be made.\"}]","AGENCI ES CONTINUE THE LONG WAIT FOR ADMINISTRATIVE COST ALLOWANCES - AGENCIES CONTINUE THE LONG WAIT FOR ADMINISTRATIVE COST ALLOWANCES | PDF",1790604926,18]