THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: THURSDAY, June 2, 1994 TAG: 9406020482
SECTION: LOCAL PAGE: D1 EDITION: NORTH CAROLINA
SOURCE: BY PERRY PARKS, STAFF WRITER
DATELINE: 940602 LENGTH: ELIZABETH CITY
As one of 983 schools nationwide to be added in the Federal Direct Student Loan Program's second year, ECSU will play a bigger role in deciding who gets loans and a smaller role in tracking down defaulters, said James Swimpson, the school's financial aid director.
{REST} The burden of collecting payments will shift largely from the school to the federal government. Swimpson said the government should be more aggressive in finding nonpayers than the banks that currently serve as middlemen in the loan process.
Over time, government and school officials hope the direct method will increase efficiency.
``If you owe the feds, usually you're gonna pay the feds,'' Swimpson said.
ECSU had applied to be among the 104 schools to participate in the program's first year, beginning this fall. ``We did want to get in on the ground floor,'' Swimpson said.
But he added that coming in the second year has its advantages, such as letting other schools work out the bugs in the system.
Swimpson said the school will participate in workshops and go through a training period before launching the program. When things are up and running, the plan is to share information with the government electronically.
``We think it's going to be an easier program to manage,'' Swimpson said.
About a third of ECSU's 2,100 students received loans totaling nearly $1.2 million dollars in the 1993-94 academic year, Swimpson said. The school's current default rate is about 17 percent, less than the 25 percent maximum allowed, he said. by CNB