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The dispute began after ED halted administrative cost allowance payments in 1984, interpreting the Higher Education Act as optional, until Congress required payment in 1986. 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\n# ED PAYS COST ALLOWANCES AS PROMISED,PROMPTING TEXAS TO DROP SUIT\n\nLoan guarantee agencies across the nation received checks from the EducationDepartment totaling more than $85 million last week,prompting the TexasGuaranteed Student Loan Corp.to drop the lawsuit it had filed against ED lastmonth。  \n\"We received [administrative fund]payments from the department for 1985 andthe first two quarters of 1986,\"Joe McCormick,president of the Texas agency,said yesterday.  \n\"More importantly,\"MeCormick added,\"we received a written letter from Assis-tant Education Secretary [C.Ronald]Kimberling that said the department wouldcontinue to make the payments as required by law.He sent that letter not justto us,but to all state agencies.\"  \nKimberling said ED is pleased that Texas dropped the lawsuit.\"of course,webelieve it was an unnecessary suit to begin with,\"Kimberling added,notingthat he had assured the loan agencies that checks would be sent as soon as ED'sbudget process allowed(HED,July 21)。  \nWhen The Dispute BeganUntil 1984,state agencies received checks foradministrative cost allowances from ED on a quarterly basis.The funds,equalto 1 percent of an agency's loan volume,are used to pay a variety of admini-strative costs.  \nIn an attempt to save costs,ED halted payment of the administrative funds inOctober 1984。ED interpreted the Higher Education Act to say that payment ofthe cost allowances was optional.The National Council of Higher EducationLoan Program(NCHELP)disagreed with ED's interpretation,and the disputespilled into the halls of Congress earlier this year.  \nCongress,through the fiscal 1986 budget reconciliation act,P.L.99-272,required ED to pay the administrative funds,and Kimberling announced at theNCHELP default conference in March that cost allowances were forthcoming(HED,March 26)。  \nAgency officilals had hoped that would end the dispute,but as ED's budget re-view dragged on for nearly three months,the Texas agency decided it had waitedlong enough。  \n(more)  \n     August 28,1986  \nserves as NCHELP president,assured ED that the suit would be_dropped as soonas payment was received.McCormick lived up to his word,as Texas withdrew thesuit Aug.22.  \nTexas already has received nearly $4 million from ED。\"That makes a big dif-ference,\"MeCormick said,adding that the funds are especially welcome at someof the younger,smaller agencles,where cash-flow problems often exist.  \nThus,the lengthy administrative fund dispute appears to be over.But EDofficials have not softened their opinion concerning the payment of the costallowances.  \n\"Basically,our position hasn't changed,\"Kimberling said,noting that EDbelieves agencies do not need the funds to perform their duties.\"But that[nonpayment]would take a change in the law,and we must abide by the law.\"  \nDespite the rift that grew between ED and the guarantee agencies over theadministrative funds,McCormick says there will not be any bad blood.\"Weexpect we can all go forward from here,\"he said.  \nMcCormick said Kimberling and Bruce Carnes,ED's deputy undersecretary forplanning,budget and evaluation,were up front about their situation.\"Theyvery candidly told me where they stood,\"he explained.\"I've had no quarrelwith the way they've communicated with us.\"  \n\"We are just glad the whole thing is over with,\"he added.\"We look forward toa close relationship with the department in the future.\"  \nKimberling,however,remains unconvinced that all the legal fuss was necessaryto resolve the conflict.\"As usual,it seems as if the only winners [in thesesituations]turn out to be some lawyers,\"Kimberling said.--Bi11 Reinhard  \n# PEW GRANTS AWARDED TO STRENGTHEN LIBERAL ARTS CURRICULA\n\nThe Pew Memorial Trust has made grants totaling $7.2 million to 15 undergradu-ate colleges and universities.The grants are part of a five-year programintended to revitalize and strengthen educational institutions'1iberal artsdisciplines.  \nThe institutions,selected on the basis of their p","cbCaiosSJn4iSIPN","https://ap.wps.com/l/cbCaiosSJn4iSIPN","pdf",1164109,"English","# ED PAYS COST ALLOWANCES AS PROMISED, PROMPTING TEXAS TO DROP SUIT\n## When the dispute began\n## How the conflict was resolved\n## Ongoing positions despite the payment","[{\"question\":\"Why did Texas withdraw its lawsuit against ED?\",\"answer\":\"Texas withdrew after receiving administrative fund payments and receiving a written commitment from Assistant Education Secretary C. Ronald Kimberling that ED would continue making required payments.\"},{\"question\":\"What were the administrative cost allowances based on?\",\"answer\":\"They were equal to 1 percent of an agency’s loan volume and used to cover various administrative costs.\"},{\"question\":\"How did Congress affect the dispute in 1986?\",\"answer\":\"Through the fiscal 1986 budget reconciliation act, P.L. 99-272, Congress required ED to pay the administrative funds, which Kimberling announced as forthcoming.\"}]","ED PAYS COST ALLOWANCES AS PROMISED - PROMPTING TEXAS TO DROP SUIT - August 28, 1986 | PDF",1789969238,13]