Handling of loans should not be duty of government

At last, something is being done to help students receive their federal loans faster.

Recently, Gov. Pete Wilson signed a higher education bill that will restructure the way California operates its federal student loan program. This will allow students to receive their federal loans faster.

Assembly Bill 3133 will go into effect on Jan. 1, 1997, creating a non-profit corporation specifically designed to manage the federal loan programs.

The intent of the bill is to provide the means for students to receive their loans faster by allowing them to side-step certain state rules and regulations. Presently all state and federal loans are administered by the Student Aid Commission.

Because of the reduction in red tape, both students and financial aid offices will benefit.

Another focus of the new program will be on the delivery of services. Students will be able to access the Internet to find out the status of their loans from their PCs.

This program is also designed to cut information lines in half. In doing this, students can concentrate on more important things like studies without having to stand in long lines to find out about the status of their student loans.

Opponents of the bill are worried that changing the control of student loan programs from the commission to outside corporations will make monitoring the repayment of loans difficult.

To ease some of the tension that opponents of the bill are feeling, a contract or agreement could be written up between the government and these private sectors.

The agreement should state exactly how the system will work and how student loans will be distributed.

These contract questions should be addressed so that both parties know exactly how the program will operate.

This will ensure fastidiousness, efficiency and effectiveness for all of those concerned.

Tino Poti is a reporter for the Daily Forty-Niner.