Summary: Informational Package on Ford FDLP, sent to FAAs
(Informational Package on Ford FDLP, sent to FAAs)
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.
Senior Advisor to the Secretary