Education: Making College More Costly

Tighter loan rules will squeeze schools, parents and students

Since 1978, every U.S. college student, regardless of family income, has been eligible for a Government guaranteed student loan. Not surprisingly, these loans swiftly grew into the nation's major source of student aid, contributing heavily to college budgets. This year they total about $5 billion.

Now the Reagan Administration is trying to cut back drastically on such student loans. Its motto is: "Families and students—not the Federal Government—should be the first source of funds for education expenses." Its goal: to tighten standards of loan eligibility and require larger family contributions to college costs. Under...

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