Dept. of Education Rule Change Will Consolidate Loan Requirement

Financial aid recipients at Harvard will have an easier--but not necessarily safer--time applying for loans next year.

A Department of Education (DOE) rule change announced last week means that students will now have to sign only one promissory note per year to get loans.

"This is great news because our students here have so many outside awards coming in," said Jannette Parks, Harvard coordinator for federal and state aid.

The change will allow universities to coordinate loan changes without requiring more promissory notes.

"In most cases if you increase or decrease the loan, you still only have to sign for one loan," Parks said.

But the new system worries some consumer groups who say schools could now easily saddle additional loans on students without their permission.

The DOE is making the change largely to reduce paperwork, the Chronicle of Higher Education reported last Friday.

Parks also said that, although promissory notes are good for one year now, the government plans to expand the notes' significance.

"They are moving towards a Master Promissory Note that will be multiple-year," Parks said.

Some students said they appreciated not having to make multiple trips to sign their loans, though others were less enthused about the change.

"Going to the office two times a year is not such a big deal," said Gabor D. Gyori '99.

The DOE will now also require an investigation of all students reporting former drug convictions on the Federal Application for Student Aid before they are eligible for aid.

In addition, students who leave school during the semester will now be required to repay their Pell grants.