September 15, 2000
Plan to Give Loan-Guarantee Agencies Flexibility Stalls
A new effort to transform the role of student-loan-guarantee agencies is moving less quickly than anticipated, as Education Department officials wrangle over the purpose and goals of the project.
In February, the department decided to negotiate "voluntary flexible agreements" with six guarantee agencies. The agreements are supposed to allow the guarantors to test new ways to carry out their duties more effectively, but after seven months of negotiating, the department has struck a deal
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