Federal News Roundup
To reduce the number of regulations involving colleges and universities and to get more people to repay their overdue National Direct Student Loans, Secretary of Educa-tion William J. Bennett has proposed changes in regulations governing the program.
Proposed rules appearing in the Feb. 26 Federal Register would require institutions to follow existing guidelines on collection and also to use "any additional collection measures" normally used for securing repayment of other amounts owed the institution, such as parking fees, book bills, and overdue tuition accounts.
The proposals would require institutions to withhold transcripts and deny loan defaulters further stu6dent or alumni benefits.
Among other changes, the proposals call for reducing the number of notices sent a borrower during grace periods, streamlining billing procedures, and eliminating the requirement that an institution telephone or personally contact a borrower to determine why payment has not been made.
The rules also would require institutions to refer information regarding defaulted accounts to at least one credit bureau and encourage colleges to file claims against loan defaulters in small-claims court.