[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-417626-105":3,"doc-detail-417626-en":81,"detail-sidebar-cat-0-en-105":98},{"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","student-aid-belt-tightening-foreseen-in-eds-reauthorization-plan","STUDENT AID BELT-TIGHTENING FORESEEN IN ED'S REAUTHORIZATION PLAN","","A report quotes Education Department officials and industry leaders on proposed revisions to the Higher Education Act reauthorization, emphasizing tightened eligibility for independent status and need-based student aid. The administration’s plan would aim to reduce costs by cutting aid to middle-income students, shifting more burden to families, and targeting funds to the lowest-income borrowers. The article outlines possible changes to GSL, NDSL, Pell Grant rules, lender incentives, and administrative cost allowances under Gramm-Rudman-Hollings constraints.",{"@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/exam/","Exam",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/student-aid-belt-tightening-foreseen-in-eds-reauthorization-plan/417626/",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/student-aid-belt-tightening-foreseen-in-eds-reauthorization-plan/417626.png","ImageObject",300,407,{"name":42,"@type":43},"Mimi","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-30","2026-09-28",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",6,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What cost-cutting approach is described for student aid under ED’s reauthorization plan?","Question",{"text":63,"@type":64},"Officials describe reducing aid to middle-income students, increasing the burden on families, and targeting federal aid to the lowest-income individuals.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"How might the Guaranteed Student Loan (GSL) program change?",{"text":68,"@type":64},"Predicted changes include an increased interest rate for borrowers, a reduced special allowance paid to lenders, and greater cost-sharing for defaults.",{"name":70,"@type":61,"acceptedAnswer":71},"What impact could the proposals have on the Pell Grant program and award rules?",{"text":72,"@type":64},"Draft documents indicate flexibility in setting yearly grant levels by regulation and possible changes to award calculations based on expected family contribution plus a minimum self-help contribution.","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},417626,1790955254,{"code":4,"msg":82,"data":83},"success",{"doc_id":79,"user_id":84,"nickname":42,"user_avatar":85,"doc_module":4,"category_id":33,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":86,"file_id":87,"file_url":88,"file_type":89,"file_size":90,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":91,"language":92,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":93,"faqs":94,"seo_title":95,"seo_description":12,"update_tm":96,"read_time":97,"preview_page_count":4},2336477974920,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","# STUDENT AID BELT-TIGHTENING FORESEEN IN ED'S REAUTHORIZATION PLAN\n\nHEA-  \nReauthorization’86  \nAn across-the-board student aid need test and tightened criteria for indepen-dent student status are two proposals the Reagan administration will make nextweek when it unvells its long-awaited Higher Education Act reauthorizationplan,according to the Education Department's top higher education officlal.  \nActing Assistant Secretary C.Ronald Kimberling indicated that the administra-tion would propose a host of ways to cut the cost of the student aid programsby reducing aid to middle-income students,increasing the burden of student aidto the family and targeting federal aid to the lowest-income individuals.  \n\"These[student aid]programs have grown to the stage where they have to be putunder a microscope,\"Kimberling said this week.  \nKimberling made his remarks during the Coalitionof Higher Education Assistance Organizations'annual seminar in Arlington,Va.Although heoffered few specifics,Kimberling said ED's pro-  \nposal would not include\"a new batch of categorical programs,\"and several EDprograms would be recommended for repeal.  \nKimberling,like other ED officials,has remained silent on the package until1ts expected release,along with ED's fiscal 1987 budget proposal,on Feb。4.But Dallas Martin,executive director of the National Association of StudentFinancial Aid Administrators,said the higher education community can makeseveral educated guesses on what the plan wil1 include.  \nMartin said ED probably will propose eliminating the Supplemental EducationalOpportunity Grant program,the State Student Incentive Grant program and,per-haps,greatly altering the National Direct Student Loan(NDSL)program.  \nDue to the Gramm-Rudman-Hollings deficit reduction law,Martin said,the admin-istration will be looking to cut 25 percent to 30 percent from domestic pro-grams in fiscal 1987。\"I have no doubts that they will recommend eliminatingmany programs,\"he said.  \nThe Guaranteed Student Loan(GSL)program also will be targeted for alterationsin ED's reauthorization proposal,Martin predicted.Among the changes Martinforesees as likely include an increased interest rate for borrowers,a decreasein the special allowance paid to lenders and greater cost-sharing for defaults.\"Exactly what the mix wil1 be,I don't know,\"he added.(more)  \n     January 29,1986  \n# STUDENT AID BELT-TIGHTENING FORESEEN IN REAUTHORIZATION PLAN(Cont.)\n\nSources and ED draft documents issued prior to Gramm-Rudman-Hollings'passageindicate ED is considering a plan that would raise the GSL interest rate from8 percent to one based on the average 91-day Treasury B1l1 rate for the firsttwo years of principal repayment.That rate would increase to the average T-B111 plus 3 percent after the first two years of repayment under the proposal.  \nED also has been considering a proposal to establish a three-tier special al-lowance to lenders,according to draft documents.Under the plan,the specialallowance would be 2.25 percent during in-school and grace periods,3 percentduring the first two years of repayment,and there would be no special allow-ance thereafter.The federal government currently pays a special allowance onthe unpaid balance based on the T-Bil1 minus the loan interest rate plus  \n3.5 percent throughout the life of the loan.  \nChanges AheadFinally,documents indicate ED may propose cutting guaran-tee agency reinsurance rates on a sliding scale,depending upon the agency'sdefault experience.In addition,ED has been considering offering a proposalto eliminate administrative cost allowances and new loan advances,while re-calling all outstanding advances.  \nED's proposals could lead “to a fight between the NDSL and GSL programs,\"Mar-tin said,because of the 1imited amount of funding available for all federalstudent aid.  \nFor the Pell Grant program,draft documents indicate that ED has been consider-ing a proposal that would allow the education secretary flexibility in settingyearly grant levels b","cbCaitsdOuYUkZH6","https://ap.wps.com/l/cbCaitsdOuYUkZH6","pdf",1775542,7,"English","# STUDENT AID BELT-TIGHTENING FORESEEN IN ED'S REAUTHORIZATION PLAN\n## Changes Ahead\n## Missed Opportunities\n# BENNETT TO REVIEW FEDERAL ACCREDITATION CRITERIA","[{\"question\":\"What cost-cutting approach is described for student aid under ED’s reauthorization plan?\",\"answer\":\"Officials describe reducing aid to middle-income students, increasing the burden on families, and targeting federal aid to the lowest-income individuals.\"},{\"question\":\"How might the Guaranteed Student Loan (GSL) program change?\",\"answer\":\"Predicted changes include an increased interest rate for borrowers, a reduced special allowance paid to lenders, and greater cost-sharing for defaults.\"},{\"question\":\"What impact could the proposals have on the Pell Grant program and award rules?\",\"answer\":\"Draft documents indicate flexibility in setting yearly grant levels by regulation and possible changes to award calculations based on expected family contribution plus a minimum self-help contribution.\"}]","STUDENT AID 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