Cavazos Seeks Advice on Cutting Down College-Loan Defaults
Washington--Secretary of Education Lauro F. Cavazos last week asked the Congress, the public, and the education community for advice on steps to reduce defaults on federally guaranteed loans to college students.
Although the Education Department and the Congress have adopted policies to reduce defaults, the Secretary said, further action is needed to prevent future increases in the cost of covering defaulted loans.
Mr. Cavazos' request for comments appeared in the Nov. 3 Federal Register. He asked for advice on a broad range of issues, including the extent to which lenders, guarantee agencies, and colleges should share in the risk of defaults; whether students with poor credit records or without high-school diplomas should be permitted to borrow under the program; and ways to improve communication be8tween lenders and borrowers.
The responses will assist department officials in developing legislative, administrative, and regulatory proposals, Mr. Cavazos said.
Comments should be submitted to: Kenneth D. Whitehead, acting assistant secretary for postsecondary education, U.S. Department of Education, 400 Maryland Ave., S.W., ROB-3, Room 4060, Washington, D.C. 20202-5121.--rr
Vol. 08, Issue 10