DCLPublicationDate: 6/1/95 DCLID: P-95-4 AwardYear: Summary: Informational Package on Ford FDLP, sent to FAAs June 1995 P-95-4 (Informational Package on Ford FDLP, sent to FAAs) Dear Colleague: We would like to share with you some pretty impressive information about the Direct Loan Program. As you will see, all indications are that the program is a great success! Here are a couple of interesting highlights from some of the up-to-the-minute program reports and studies. A recent survey conducted by the Education Daily found that 92% of the first-year participants rated the program EXCEPTIONAL! Even more remarkably, 100% would recommend it to other schools! First-year schools report, among other things, that they are able to get money to the students quicker and that they have been able to lower their staff expenses. Many schools that hadn't switched entirely to Direct Loans plan to boost their participation in the 1995-96 school year because it is simpler to operate than the Federal Family Education Loan Program. A recently issued General Accounting Office (GAO) Program Report provided to Congress found similar results. The GAO surveyed a sample of first year schools and found that overall schools were very pleased with the program and with the assistance and guidance provided by the Department. Schools reported that they received loan proceeds faster, that the program was less complex and confusing for students and parents, and that they had much more control of the loan process. Similarly, our current financial statements received a "clean" audit opinion from the accounting firm of Urbach, Kahn and Werlin -- the first ever for a federal student aid program! The independent audit report concluded that the Direct Loan Program is "more efficient, less costly and more customer friendly" than the old guaranteed loan system. We are enclosing reprints of articles about the program so that you can learn more about the first-year participants' experiences. We hope that you find this informative. We believe the results speak for themselves. Direct Loans is a good program--it's easy to administer and it provides students with better service. Enclosed is an application package for your consideration if you have not yet signed up. Apply now and reserve your place for the 1996-97 school year. Sincerely, Leo Kornfeld Senior Advisor to the Secretary Enclosures |