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He requests approval of the Student Loan Collection Improvement Amendments of 1985 and describes how costs could grow substantially through 1990. The text discusses differences between lender default claims and net default rates, proposed reporting and disbursement requirements, and additional ED regulatory and program changes aimed at improving collections and reducing defaults.",{"@graph":69,"@context":123},[70,84,106],{"@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":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/ed-predicts-default-rate-increase-bennett-asks-for-crackdown/325109/",{"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/ed-predicts-default-rate-increase-bennett-asks-for-crackdown/325109.png","ImageObject",300,407,{"name":92,"@type":93},"Finn","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-29","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",14,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What default-rate increase does Bennett project for fiscal 1985?","Question",{"text":113,"@type":114},"Bennett projects the GSL default rate will rise to 11.7 percent in 1985, from 10.7 percent in 1984. He warns it could continue increasing if Congress does not act.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What amendments does Bennett ask Congress to approve?",{"text":118,"@type":114},"Bennett asks Congress to approve the Student Loan Collection Improvement Amendments of 1985. The proposal includes changes introduced in the Senate and offered in the House, with additional reporting, disbursement, and reinsurance adjustments.",{"name":120,"@type":111,"acceptedAnswer":121},"How does the article distinguish lender default claims from net default rate?",{"text":122,"@type":114},"It notes that 11.7 percent represents the lenders’ default claims rate, not the lower net default rate adjusted for later collection. The net rate is described as hovering around 5 percent, and state agencies say it is a more accurate reflection of true default behavior.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},325109,1790463777,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},34359740700684,"https://ap-avatar.wpscdn.com/avatar/1f400023980c374ae676?_k=1777273430885731487","Friday,August 30,1985  \nVol.13,No.170  \n# ED PREDICTS DEFAULT RATE INCREASE,BENNETT ASKS FOR CRACKDOWN\n\nCiting a projected increase of a full percent in the Guaranteed Student Loan(GSL)default rate for fiscal 1985,Education Secretary William Bennett hasasked congressional leaders to adopt measures designed to curb the rate。  \nIn a letter sent yesterday,Bennett asked Congress to approve the Student LoanCollection Improvement Amendments of 1985.Those amendments,introduced in theSenate by Sen.Dan Quayle,R-Ind.,as s.491,and offered in the House as H,R。2150 by Rep.Thomas Coleman,R-Mo.,have been supported by Bennett since theywere introduced this spring(HED,June 20)。  \nThe_default rate,which stood_at 10.7 percent in 1984,is expected to rise to  \n11.7 percent in 1985;a rate Bennett termed\"alarming.\"  \nMoreover,Education Department analysts say that unless Congress makes somechanges in the program,the default rate could continue to rise,increasing to  \n13.6 percent by 1990.Default claim costs,which ED estimates will hit s1.08billion for fiscal 1985,could increase to $1.8 billion annually in five years.  \nStaggering Implications      \"U1timately,the costs of a high default rate bycurrent students must be borne by the taxpayers and by students seeking loanin the future,\"Bennett said in the letter.\"The financial implications ofsuch an increase are staggering.\"  \nThe 11.7 percent default figure represents the lenders'default claims rate,not the lower net default rate,which is adjusted to reflect subsequent col-lection.The net rate,the number preferred by lenders and state loan guaran-tee agencies,currently hovers around 5 percent.  \nState agency representatives say the net rate is a more accurate reflection ofthe true GSL default rate.  \nAmong the changes included in the proposed amendments is a requirement thatstate agencies report defaulters to consumer credit bureaus,a mandate thatstate agencles disburse loans in multiple installments and a reduction in theinitial federal reinsurance percentage available to agencies from 100 percentto 90 percent or less,depending upon their default records.  \nIn addition,Bennett says proposed GSL regulations being released by ED nextweek will offer several changes to the program。If made final,they would re-quire that all GSL checks be made co-payable to both the student and the insti-tution and would require that lenders and state agencies \"make greater effortsto collect overdue loans and prevent defaults.\"(more)  \n      August 30,1985  \n# ED PREDICTS DEFAULT RATE INCREASE,BENNETT ASKS FOR CRACKDOWN(Cont.)\n\nOther ideas to reduce defaults being considered by ED include requiring thatlenders involved in the GSL program bear some portion of the risk of defaultand limiting eligibility for loans to students who have no bad credit history.  \nED has advocated many of these measures in the past.In addition,members ofthe higher education lending community have warmed up to a number of the pro-posals,such as credit bureau notification and multiple disbursement.  \nHowever,ideas such as the reduction in the federal reinsurance levels havedrawn fire from such groups as the National Council on Higher Education LoanPrograms(NCHELP)。Moreover,higher education advocates say plans to limitloan eligibility to good credit risks would reduce access to higher education.  \nThe projected 11.7 percent default rate for fiscal 1985 was derived from de-fault totals from the first three quarters of the fiscal year combined with areview of default rates for the fourth quarter in previous years,according toED analysts.  \nReversal In TrendTyndall Greene,an analyst in ED's postsecondarydivision,said the projected increase is particularly alarming since thedefault rate had been inching downward in recent years.\"No one really knowswhy the rate should be increasing so much,\"Greene said,but she added that therapidly increasing number of loans coming up for repayment is a factor.  \nJerry Davis,director of research and policy analysis for th","cbCaittLAqjybWxe","https://ap.wps.com/l/cbCaittLAqjybWxe","pdf",1245178,"English","# ED PREDICTS DEFAULT RATE INCREASE, BENNETT ASKS FOR CRACKDOWN\n## Projected GSL default rate and costs\n## Proposed amendments and regulatory changes\n## Reversal in trend and stakeholder views","[{\"question\":\"What default-rate increase does Bennett project for fiscal 1985?\",\"answer\":\"Bennett projects the GSL default rate will rise to 11.7 percent in 1985, from 10.7 percent in 1984. He warns it could continue increasing if Congress does not act.\"},{\"question\":\"What amendments does Bennett ask Congress to approve?\",\"answer\":\"Bennett asks Congress to approve the Student Loan Collection Improvement Amendments of 1985. The proposal includes changes introduced in the Senate and offered in the House, with additional reporting, disbursement, and reinsurance adjustments.\"},{\"question\":\"How does the article distinguish lender default claims from net default rate?\",\"answer\":\"It notes that 11.7 percent represents the lenders’ default claims rate, not the lower net default rate adjusted for later collection. The net rate is described as hovering around 5 percent, and state agencies say it is a more accurate reflection of true default behavior.\"}]","ED PREDICTS DEFAULT RATE INCREASE, BENNETT ASKS FOR CRACKDOWN | PDF",1789969706,13]