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

DATE: FRIDAY, April 12, 1991                   TAG: 9104121028
SECTION: VIRGINIA                    PAGE: B-4   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: LYNCHBURG                                LENGTH: Medium

RULING LEAVES LIBERTY U. LIABLE FOR STUDENT LOANS

A Liberty University program that allows students to study at home via videotape is a correspondence course, not an external degree program as the university maintains, the U.S. Department of Education ruled.

The ruling holds the school liable for $2 million in penalties and makes Liberty responsible for buying from lenders $4 million worth of outstanding Guaranteed Student Loans, a spokeswoman for the Education Department said Thursday.

Liberty officials, however, had estimated that the school could be held liable for $7.3 million financial aid given to students since 1985 and the reduction to $2 million was welcome news.

"Everyone was very excited about the letter," Liberty Chancellor Jerry Falwell said. "They've reduced the original liability to $2 million. You always lose at the first level, and our Washington lawyers think we got a very positive first ruling."

Liberty was sent a certified letter Monday telling officials that the School of LifeLong Learning was simply a correspondence school.

Students in correspondence schools are not eligible for as much financial aid as those in external-degree programs.

If the decision stands, Lifelong Learning students will be eligible for only half the cost of school when applying for Pell grants, and for tuition alone when applying for guaranteed student loans. Normally, the cost of transportation and expenses is factored into the cost of school.

Lifelong Learning provides students, who often cannot attend Liberty because of jobs or distance, with a package of 24 to 30 videotaped lectures, textbooks and supplemental materials. Students take tests from a proctor they select before the course begins and turn in tests and papers to professors at Liberty. Many of the videotaped lectures are from actual classes at Liberty and some are taped in a studio.

Lifelong Learning is classified as an external adult education program by the Southern Association of Colleges and Schools, Liberty's accrediting agency.

Many colleges offer courses through interactive television systems, over satellites, and on video. Falwell said that 82 other schools have similar programs.

by CNB