[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-326076-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-326076-en":131},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","new-gsl-application-process-proves-troublesome-for-schools-lenders","NEW GSL APPLICATION PROCESS PROVES TROUBLESOME FOR SCHOOLS, LENDERS","","Reports on a new U.S. Education Department requirement under the 1986 Higher Education Amendments (HEA) P.L.99-498 that shifts Guaranteed Student Loan (GSL) applications from schools to banks. Student aid officials warn of delays, tracking difficulties, and potential fraud if amounts are adjusted after college certification. Banks criticize receiving applications in an unsystematic, piecemeal manner. Congress is considering a technical amendment to ease the process, but until resolution the student aid community expects disruptive, confusing implementation.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/new-gsl-application-process-proves-troublesome-for-schools-lenders/326076/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/new-gsl-application-process-proves-troublesome-for-schools-lenders/326076.png","ImageObject",300,407,{"name":42,"@type":43},"Theodora","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-30","2026-09-21",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",12,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What new rule changes the GSL application process, and who receives the applications?","Question",{"text":63,"@type":64},"Students are required to file GSL applications with banks rather than the institutions they attend, after the college completes the need analysis procedures determining eligibility and loan size.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What problems do student aid officials expect from the new requirement?",{"text":68,"@type":64},"They anticipate delays in disbursement because students may sit on applications. They also cite potential for abuse if a student fraudulently increases the amount after receiving loan certification from the college.",{"name":70,"@type":61,"acceptedAnswer":71},"How are banks reacting to receiving applications under the new process?",{"text":72,"@type":64},"Banks are displeased because applications arrive in a piecemeal fashion rather than through the systematic workflow that lenders and institutions had previously coordinated.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},326076,1790203798,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,106,111,115,120,123,127],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":93,"show_sort_weight":94,"slug":95},"Exam",70,"exam",{"id":97,"doc_module":4,"doc_module_name":25,"category_name":98,"show_sort_weight":99,"slug":100},5,"Comic",60,"comic",{"id":102,"doc_module":4,"doc_module_name":25,"category_name":103,"show_sort_weight":104,"slug":105},6,"Technology",50,"technology",{"id":107,"doc_module":4,"doc_module_name":25,"category_name":108,"show_sort_weight":109,"slug":110},7,"Healthcare",40,"healthcare",{"id":112,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":113,"slug":114},8,30,"research-report",{"id":116,"doc_module":4,"doc_module_name":25,"category_name":117,"show_sort_weight":118,"slug":119},9,"Religion & Spirituality",20,"religion-spirituality",{"id":118,"doc_module":4,"doc_module_name":25,"category_name":121,"show_sort_weight":118,"slug":122},"World Cup","world-cup",{"id":124,"doc_module":4,"doc_module_name":25,"category_name":125,"show_sort_weight":124,"slug":126},10,"Lifestyle","lifestyle",{"id":128,"doc_module":4,"doc_module_name":25,"category_name":129,"show_sort_weight":97,"slug":130},19,"General","general",{"code":4,"msg":82,"data":132},{"doc_id":79,"user_id":133,"nickname":42,"user_avatar":134,"doc_module":4,"category_id":112,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":97,"language":140,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":12,"update_tm":144,"read_time":145,"preview_page_count":4},687197207919,"https://ap-avatar.wpscdn.com/avatar/a000253d6f5f7c60be?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779446848396160552","Vol。14,No。243  \n             Monday,December 22,1986  \n# NEW GSL APPLICATION PROCESS PROVES TROUBLESOME FOR SCHOOLS,LENDERS\n\nTo hear student aid officials describe it,a new provision that requires stu-dents to file their Guar anteed Student Loan(GSL)applications with banks ra-ther than the institutions they attend is an idea that may have looked good onpaper but turned ugly in practice.  \nThe Education Department telephones have been ringing ever since the require-ment went into effect with the passage of the 1986 Higher Education Amendments(HEA),P.L.99-498,ED staffers say.\"I'd say about 99.9 percent of all stu-dent aid officers are pulling their hair out over this,\"Assistant EducationSecretary C.Ronald Kimberling said last week.  \nUntil HEA,students could file their GSL applications directly with theschools,which in turn would funnel them to the lenders.Now,under ED's in-terpretation of the 1aw,students must send their loan application to thelending institution after the college completes the need analysis proceduresthat determine the loan size that students are eligible for.  \nStudent aid officials say the situation will delay check disbur sement sincestudents have the tendency to sit on their applications.There also is a po-tential for abuse,they say,because once a student receives his loan certi-fication from the college,he or she could fraudulently increase the amount be-fore sending it to the bank。They add that it will be tougher for institu-tional aid offices to track the number of loan applicants accur ately.  \nBanks are displeased with the provision because theywill be receiving applications in a piecemeal fashion,rather than in thesystematic way some lenders and institutions had worked out.  \nThe new provision\"is a problem,\"acknowledged Joan Holland,director of pro-gram and governmental affairs for the National Association of Student FinancialAid Administrators(NASFAA)。\"We are hoping it can be resolved in a technicalamendment when Congress gets back in January.\"  \nHouse and Senate education staffers have indicated that when Congress returnsto Washington,D.C.,their first order of business will be to devise a techni-cal amendment to P.L。99-498,cleaning up some of the minor problems with thebil1.Maryln McAdam,professional staffer with the House Postsecondary Educa-tion Subcommittee,said she expects the technical amendment to include a changein the application provision to ease the current situation.  \n\"We can correct it simply,\"McAdam said last week.\"We will find a way toallow the institutions to submit the applications for the students.Thesituation is a tempest in a teapot.\"(more)  \n(  \n    December 22,1986  \nBut until it is resolved,the student aid community believes it is in for someconfusing times.Bankers have complained about the new requirement,accordingto William Clohan,counsel for the Consumer Bankers Association,which repre-sents many of the largest GSL lenders.  \nThe bil1 language instituting the requirement,which made its way into the lawduring the waning hours of the House-Senate conference,was not included ineither the original House or Senate-passed versions of HEA,he said.  \n\"Our banks are very disappointed with the language,\"Clohan said.\"Instead ofa block of loans going from an institution to a lender,loans are coming infrom all over the place.  \nStreamlining Attempts SabotagedOver the years,banks,state loanguar antee agencies and colleges jointly have attempted to streamline the GSLapplication process,Clohan added.The new provision \"frustrates\"the progressthat has been made in this area,he explained.\"It is disruptive,\"he said.  \nCongress added the language to the application portion of P.L.99-498 in anattempt to clarify the loan process for students.Members of Congress hadheard complaints from former borrowers who claimed that the loan process al-lowed them to borrow money so easily--and without any direct contact with alender--that they did not realize the money they received needed to be repaid.  \nBy ","cbCaiaF604R9h1wa","https://ap.wps.com/l/cbCaiaF604R9h1wa","pdf",1214890,"English","# NEW GSL APPLICATION PROCESS PROVES TROUBLESOME FOR SCHOOLS, LENDERS\n## New requirement under HEA\n## Expected delays and abuse risks\n## Banks’ objections and streamlining concerns\n## Congressional technical amendment plans\n## Stakeholder reactions and proposed fixes","[{\"question\":\"What new rule changes the GSL application process, and who receives the applications?\",\"answer\":\"Students are required to file GSL applications with banks rather than the institutions they attend, after the college completes the need analysis procedures determining eligibility and loan size.\"},{\"question\":\"What problems do student aid officials expect from the new requirement?\",\"answer\":\"They anticipate delays in disbursement because students may sit on applications. They also cite potential for abuse if a student fraudulently increases the amount after receiving loan certification from the college.\"},{\"question\":\"How are banks reacting to receiving applications under the new process?\",\"answer\":\"Banks are displeased because applications arrive in a piecemeal fashion rather than through the systematic workflow that lenders and institutions had previously coordinated.\"}]","NEW GSL APPLICATION PROCESS PROVES TROUBLESOME FOR SCHOOLS, LENDERS | PDF",1789972147,13]