[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-416046-105":59,"doc-detail-416046-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","likely-gsl-compromise-would-cut-incentives-to-lenders","LIKELY GSL COMPROMISE WOULD CUT INCENTIVES TO LENDERS","","A congressional compromise in the Higher Education Act reauthorization would reduce the special allowance paid to Guaranteed Student Loan (GSL) lenders from 3.5% above the Treasury Bill rate to 3.25%. Supporters cite savings of about $100 million over three years, while lenders warn the incentive cut could remove many lenders—especially those serving high-risk, low-income students. Additional changes include new guarantee fees for state agencies based on default rates and limits on graduated repayment.",{"@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/likely-gsl-compromise-would-cut-incentives-to-lenders/416046/",{"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/likely-gsl-compromise-would-cut-incentives-to-lenders/416046.png","ImageObject",300,407,{"name":92,"@type":93},"Patrick","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-29","2026-09-28",true,{"@type":102,"interactionType":103,"userInteractionCount":44},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What change is proposed for GSL lenders under the compromise?","Question",{"text":112,"@type":113},"The special allowance for GSL lenders would be reduced from 3.5% above the Treasury Bill rate to 3.25% above the T-Bill rate.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why do bankers say the reduction could affect student access?",{"text":117,"@type":113},"They argue the incentive cut would push many lenders out and make banks less likely to lend to high-risk students, especially from low-income groups.",{"name":119,"@type":110,"acceptedAnswer":120},"How would state loan guarantee agencies be affected?",{"text":121,"@type":113},"The compromise would impose a new guarantee fee tied to each agency’s prior-year default rate, with lower fees below a 5% default threshold and higher fees above it.","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},416046,1790651821,{"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":44,"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},549758146520,"https://ap-avatar.wpscdn.com/avatar/80002397d8c0411e94?_k=1775819394049821470","Vo1.14,No。157  \nThursday,August 14,1986  \n# LIKELY GSL COMPROMISE WOULD CUT INCENTIVES TO LENDERS\n\nFor years,bankers involved in the Guaranteed Student Loan(GSL)program havesaid that a cut in the special allowance rate would force many of them to stopmaking GSLs.A congressional conference committee now appears willing to findout if these lenders have been telling the truth。  \nUnder a compromise being negotiated by House and Senate conferees on the HigherEducation Act reauthorization bil1,s.1965,the special allowance to GSLlenders would be reduced from 3.5 percent above the Treasury Bill rate to  \n3.25 percent above T-B1ll.The move would save some $100 million over threeyears,according to committee estimates.  \nHouse conferees have bristled at the thought of cutting the special allowancerate,which has been designed as a quarterly fee paid to lenders to compensatefor the difference between the interest the lender receives and the market ratefor borrowing.But as the conference dragged on,House Postsecondary EducationSubcommittee Chairman William Ford,D-Mich.,said the time had come for some\"serious wrestling\"with the reauthorization bil1.  \nMay Force Lenders OutThe cut of the special allowance to 3.25 percentwas proposed in a counteroffer made Tuesday by Senate conferees.While theentire offer has not been approved by the conference committee,both sidesagreed to the 3.25 figure.  \nWilliam Clohan,counsel to the Consumer Bankers Association,said the specialallowance reduction \"may knock half of the lenders out of the program\"andadded,\"I don't know what it will do to student access to funds.\"  \nBecause of the cut in incentives,Clohan explained,many banks will be lesslikely to lend money to high-risk students from the lowest income groups.Although there are provisions for a\"lender of last resort\"who would grantloans to any eligible student,that student first would have to be turned downat conventional loan outlets.  \nOnce a student is turned down the first time,Clohan speculated,he or she maydecide against pursuing a higher education altogether.  \nLenders would not be the only ones taking a hit under the compromise.Stateloan guarantee agencies would be socked with a new\"guarantee fee\"based ontheir default rates.The fee would be equal to 0.25 percent of all the loansan agency insured in the prior year during periods when the agencies have adefault rate of less than 5 percent.Those agencies with a default rategreater than 5 percent would be assessed a fee of 0.5 percent.(more)  \n(  \n# LIKELY GSL COMPROMISE WOULD CUT INCENTIVES TO LENDERS(Cont.)\n\nThe conferees also agreed to institute a limited-income contingent loan demon-stration project,as included in the original Senate bill,and would not allowgraduated repayment of GSLs.  \nSeveral differences remain to be ironed out,however.Most notable is theinterest rate to borrowers.Senate conferees had requested that the rate in-crease to 10 percent,while House conferees said they would accept the compro-mise only if,among other things,the rate remains at 8 percent.Said Rep.James Jeffords,R-Vt.,ranking minority panel member,\"I see no reason why wecan't keep it at 8 percent.\"Added Rep.Carl Perkins,D-Ky.,\"If anything,weshould be talking about lowering the interest rate rather than increasing it.\"  \nConferees discussed three new GSL proposals Tuesday--from the House staff,Senate staff and House Republican staff--before nearing completion of the com-promise。The surprise release of the third proposal from the House minorityrankled Ford,who said reauthorization had been a bipartisan effort up to then.  \nIn other business Tuesday,the conferees appeared closer to an agreement on afunding authorization cap for the first year of the bill.Senate confereeslast week proposed a five-year authorization cap,beginning with a cap of$10.2 billion(HED,Aug.11)。While House members this week continued to op-pose a five-year cap,they did agree to a $10.2 billion cap in the first year.The remaining four years of the bill","cbCairvd5Rqttqxl","https://ap.wps.com/l/cbCairvd5Rqttqxl","pdf",1799603,"English","# LIKELY GSL COMPROMISE WOULD CUT INCENTIVES TO LENDERS\n## May Force Lenders Out\n## (Cont.)\n# EPA ASKS WHETHER IT SHOULD REGULATE ASBESTOS IN COLLEGES\n## Options and comment deadline\n# SENATE PANEL HITS CIVIL RIGHTS COMMISSION WITH FUNDING CUT,STAFF RESTRICTIONS","[{\"question\":\"What change is proposed for GSL lenders under the compromise?\",\"answer\":\"The special allowance for GSL lenders would be reduced from 3.5% above the Treasury Bill rate to 3.25% above the T-Bill rate.\"},{\"question\":\"Why do bankers say the reduction could affect student access?\",\"answer\":\"They argue the incentive cut would push many lenders out and make banks less likely to lend to high-risk students, especially from low-income groups.\"},{\"question\":\"How would state loan guarantee agencies be affected?\",\"answer\":\"The compromise would impose a new guarantee fee tied to each agency’s prior-year default rate, with lower fees below a 5% default threshold and higher fees above it.\"}]","LIKELY GSL COMPROMISE WOULD CUT INCENTIVES TO LENDERS | PDF",1790603949,18]