HOUSE RECONCILIATION PLAN WOULD STRIKE - $820. MILLION FROM GSL PROGRAM

Sep 21, 2026

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The House approved a budget reconciliation plan to cut $820 million from the Guaranteed Student Loan (GSL) program over the next three years as part of the fiscal 1986 budget bill. The proposal would require lenders to make multiple loan disbursements, add a financial needs analysis test for GSL applicants, and recall $50 million in state agency advances in fiscal 1988. It would also extend the period before state agencies may make insurance claims on defaulted loans and merge the plan with a student loan collection measure to tighten eligibility and reporting requirements for defaulted loans.

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HOUSE RECONCILIATION PLAN WOULD STRIKE $820. MILLION FROM GSL PROGRAM

SINGLETON RESIGNS AS HEAD OF ED's OFFICE FOR CIVIL RIGHTS

SINGLETON RESIGNS AS HEAD OF ED's OFFICE FOR CIVIL RIGHTS (Cont.)

BENNETT STROKES HIGHER ED GROUP, CALLING FOR EXCELLENCE AND ACCESS

Vo1.13,No。209 # HOUSE RECONCILIATION PLAN WOULD STRIKE $820.MILLION FROM GSL PROGRAM The House yesterday approved,228-199,a plan that would cut $820 million fromthe Guaranteed Student Loan(GSL)program over the next three years. The plan is included in the fiscal 1986 budget reconclliation bill,H.R。3500,which the House Budget Committee approved Oct.3(HED,Oct.7)。 The House Education and Labor Committee had been ordered in August to trim$800 millon from the $3.8 billion GSL program over the next threergearstoocomply with the fiscal 1986 budget resolution. Under the House plan,the GSL program would be changed to require lenders tomake multiple loan disbursements,require a financial needs analysis test foreach GSL applicant and recall $50 million in state agency advances in fiecal1988。 It would also extend from 120 days to 210 days the time after whichstate agencies become eligible for insurance claims on a defaulted loan. The budget reconciliation plan was merged with a student loan collection bill, H。R。2150,which would provide an additional $48 million in savings.Thelegislation would make students with one loan in default ineligible for furtherfederal financial aid and would require state agencies to report loans tocredit bureaus as well as set a six-year statute of 1imitations on student loancollection. The Senate last night was expected to vote on its version of the reconcilia-tion bill,s.1730,which would cut an estimated $865 million over three years.The plan,which was developed by the Education,Arts and Humanities Sub-committee staff,is similar to the House plan in requiring lenders to makemultiple loan disbursements(HED,Oct.3). But the Senate differs with its new loan consolidation plan,in thatdstudents133with $5,000 or more in various loans could consolidate their payments into oneholding a 10 percent interest over a 15 year period.--Kristina Brenneman # SINGLETON RESIGNS AS HEAD OF ED's OFFICE FOR CIVIL RIGHTS Harry singleton,the Education Department's assistant secretary for civilrights,has resigned his post effective Dec。31,Education Secretary WilliamBennett announced yesterday. Singleton,who has headed ED's office for Civil Rights since May 1982,making(more) October 25,1985 # SINGLETON RESIGNS AS HEAD OF ED'S OFFICE FOR CIVIL RIGHTS(Cont.) his tenure the longest in the history of the office,earned praise from Bennettbut criticism from lobbyists and legislators for the job he did in running OCR. "Harry Singleton brought much-needed management and policy direction to OCR,"Bennett said in a statement."He has vigorously enforced our nation's civiirights laws and contributed substantially to the goal of desegregation whilerejecting unjustified reliance on numerical goals and quotas.Harry is afirst-rate manager and has been a highly valued member of my senior staff。Hewill be missed." Upon leaving ED,Singleton plans to engage in consulting work in the Washing-ton,D.C.,area.ED spokeswoman Jane Glickman had no word on who will succeedSingleton.Singleton could not be reached for comment. Critics Emerge The National Association for the Advancement of ColoredPeople(NAACP),which has long been at odds with OCR's enforcement of federalcivil rights statutes in education,hopes that Singleton's successor"will do abetter job,"according to Althea Simmons,NAACP executive director. Rep.Ted Weiss,D-N.Y.,chairman of the House Intergovernmental Relations andHuman Resources Subcommittee,which is investigating OCR's enforcement of ci-vil rights laws,said yesterday that,no matter who Singleton's successor is,the Reagan administration's record on civil rights won't improve. "It would be nice to believe that this signals the administration's interest inbetter civil rights enforcement,"Weiss said,"but our recent hearings suggestotherwise.Mr.Singleton was simply carrying out administration policy toundermine civil rights and there is no reason to believe his successor will doany better." Trading Barbs

FAQs

What did the House approve regarding the GSL program?

The House approved a reconciliation plan to cut $820 million from the Guaranteed Student Loan program over the next three years.

What key changes would the House plan make to GSL lending?

It would require multiple loan disbursements, introduce a financial needs analysis test for applicants, and recall $50 million in state agency advances in fiscal 1988.

What additional measures were merged with the reconciliation plan?

The plan was merged with a student loan collection bill to provide additional savings, restrict federal aid eligibility for students with one defaulted loan, and require reporting to credit bureaus plus a six-year statute of limitations for loan collection.

Sep 21, 2026

Uploaded by Theodora