Harvard Loan Program Steady Despite Chaos in Washington

Harvard students will not be adversely affected by bureaucratic delays in the federally guaranteed student loan program, R. Jerrold Gibson '51, director of the Student Loan Office, said Wednesday.

The New York Times had reported Monday that the federal loan program was in shambles, leaving some students without funds for the coming school year.

The confusion and delays were caused by the Higher Education Act of 1972, passed by Congress in June, which broadens the student loan program and changes the regulations for receiving loans.

In light of this disorder, the new education act was suspended last month until March 1973 to allow colleges to process student requests more quickly using the old procedures.

At Harvard, however, arrangements have been made with the Comptrollers Office to insure that no loan students will receive angry letters demanding tuition payment Gibson said.

"We have no problems here because we're operating as the lender. We merely send our student loan requests to the Office of Education for an okay," Gibson said.

The federal government acts as a guarantor of the loans against default but does not provide the capital for the loans.

This year, the University will make available about $2.5 million for loans to 3000 students under this government insured, no-risk program.

The new education act to take effect next year will raise the maximum guaranteed loan from $1500 to $2500 per year. The new act also will institute a "needs test" which will apply to all students even if their family income is less than the $15,000 limit which previously assured a loan guarantee.