
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, July 25, 1990                   TAG: 9007250286
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A2   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

NEW COMPANY SOUGHT FOR STUDENT LOANS

The Department of Education announced Tuesday that it is searching for an entity to assume billions of dollars in student guaranteed loans currently held by a financially beleaguered institution.

Department officials confirmed at a news conference that the Higher Education Assistance Foundation, one of 55 non-profit agencies that guarantee student loans by banks and other lending institutions, is threatened by a high default rate. If the company cannot pay off the defaulted loans, the government is obligated to make up the difference - a bill that could total more than $1 billion.

- Los Angeles Times

by CNB