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Following the House passage of budget reconciliation legislation, state guarantee agencies are expected to resume receiving these allowances under language in H.R. 3128 directing the Education Department to pay. The funds, equal to 1% of an agency’s loan value, support expenses incurred by the agencies. Officials warn that pending review and possible budget eliminations could restart the funding 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Văn Học","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-02","2026-09-28",true,{"@type":102,"interactionType":103,"userInteractionCount":29},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"Why are state loan guarantee agencies trying to recover delayed cost allowances?","Question",{"text":112,"@type":113},"Because the Education Department stopped paying administrative cost allowances, leaving agencies waiting for funds needed to cover required expenses.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What does H.R. 3128 do regarding administrative cost allowances?",{"text":117,"@type":113},"It includes language directing the Education Department to pay the cost allowance again, after legislative reconciliation progress.",{"name":119,"@type":110,"acceptedAnswer":120},"What is the impact of potential federal education budget cuts discussed in the document?",{"text":121,"@type":113},"Officials argue cuts could reduce student aid and limit educational access, especially for students with the greatest 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--For state loan guarantee agencies,an 18-month wait foradministrative funds soon may be over.  \nWith the House's passage of budget reconciliation legislation last week,stateguarantee agencies should once again begin receiving their administrative costallowances.Both the House and Senate versions of H.R。3128,the reconcilia-tion measure,included language directing the Education Department to pay thecost allowance.  \nHow important are the funds?\"It will mean survival for some agencies,\"saidJean Frohlicher,staff director of the National Council of Higher Education  \nLoan Programs(NCHELP),which is holding its annual  \nConference-default conference here this week.ReportAdded NCHELP President Joe McCormick,executivedirector of the Texas Guaranteed Student LoanCorp.:\"Now some of our agencies,especially the younger,smaller agencies,wil1 be able to hang on.\"  \nUntil October 1984,ED annually paid the cost allowance to agencies.Thefunds,equal to 1 percent of an agency's loan value,were used to pay a varietyof expenses incurred by the agencies.  \nSince then,however,ED has questioned whether it is required to disburse thefunds under the Guaranteed Student Loan(GSL)laws.Despite the pleas of guar-antee agencies and the threat of lawsuits,ED has refused to send the checks,saying there is not enough funds available in the GSL budget and that costallowance payments are discretionary.  \nFunds Tied UD         According to guarantee agencv officialg.EDAccoraing o guarancee agency oIIicials,BD's aelay nas  \nNow,it appears that chapter is coming to a close for the state agencies.President Reagan is expected to sign H.R。3128,which includes cost-savingmeasures that would trim the GSL program by $735 million over three years(HED,March 24)。  \nStill1,McCormick indicated that guarantee agencies are taking a skeptical viewof the developments.\"We have been prepared to sue [ED],and we are still pre-pared to sue if we don't receive prompt payment,\"McCormick said.Guaranteeagencies have considered taking ED to court for failing to release the funds(HED,Sept.19,1985)。(more)  \n      March 26,1986  \n# STATE LOAN AGENCIES PREPARE TO RECEIVE COST ALLOWANCES(Cont.)\n\nDespite H.R.3128's promise,this may be only round one for the state agenciesin the administrative cost allowance battle.  \nED officials yesterday said they are reviewing the reconciliation bil1.Thedepartment's current budget does not include funds for administrative cost al-lowances,they said,and,in its fiscal 1987 budget proposal,ED has asked thatadministrative cost allowances be eliminated.As Congress continues its driveto balance the budget,guarantee agency officials worry that ED's cost-savingbudget proposal may be given close attention this year.--Bil1 Reinhard  \n# KIMBERLING,REYNOLDS SQUARE OFF ON HIGHER ED BUDGET CUTS\n\nThe Education Department's proposal to trim student aid programs represents thedepartment's willingness to shoulder its \"fair share\"of the deficit reductioneffort,8ays Assistant Education Secretary C.Ronald-Kimberling.  \nHowever,W.Ann Reynolds,chancellor of the California State University system,says the proposed cuts are anything but fair.  The cuts\"wil1 decimate educa-tional opportunity for our poorest and neediest students.\"  \nKimberling and Reynolds took the fiscal 1987 budget debate to the airwaves thisweek,discussing student aid on the CBS television program,\"Nightwatch.\"  \nNeeds EyedKimberling,ED's new assistant secretary for postsecondary ed-ucation,said proposed cuts in federal student aid programs are part of theReagan administration's plan to concentrate federal funds on the neediest stu-dents.In its fiscal 1987 budget plan,ED proposed reducing federal studentaid programs by some $1.8 billion(HED,Feb.13)。  \nThe administration decided that\"1ittle kids,\"those in elementary and secon-dary school,are more deserving of limited federal money than the\"big kids,\"those in postsecondar","cbCaiaUrQKEPH4eC","https://ap.wps.com/l/cbCaiaUrQKEPH4eC","pdf",1737837,"English","# STATE LOAN AGENCIES PREPARE TO RECEIVE DELAYED COST ALLOWANCES\n## STATE LOAN AGENCIES PREPARE TO RECEIVE COST ALLOWANCES (Cont.)\n# KIMBERLING, REYNOLDS SQUARE OFF ON HIGHER ED BUDGET CUTS\n# NAIA COLLEGE PRESIDENTS WANT TO INSTITUTE DRUG TESTING OF ATHLETES","[{\"question\":\"Why are state loan guarantee agencies trying to recover delayed cost allowances?\",\"answer\":\"Because the Education Department stopped paying administrative cost allowances, leaving agencies waiting for funds needed to cover required expenses.\"},{\"question\":\"What does H.R. 3128 do regarding administrative cost allowances?\",\"answer\":\"It includes language directing the Education Department to pay the cost allowance again, after legislative reconciliation progress.\"},{\"question\":\"What is the impact of potential federal education budget cuts discussed in the document?\",\"answer\":\"Officials argue cuts could reduce student aid and limit educational access, especially for students with the greatest needs.\"}]","STATE LOAN AGENCIES PREPARE TO RECEIVE DELAYED COST ALLOWANCES | PDF",1790597788,18]