A r c h i v e d I n f o r m a t i o n

 FOR EMBARGOED RELEASE:  10:30 a.m.         Contact:  Kerri Morgan  September 20, 1994                                 (202) 401-3026

DIRECT STUDENT LOANS EXAMPLE OF GOOD CUSTOMER SERVICE (KUNIN)

NORFOLK, Va., Sept. 20 -- U.S. Deputy Secretary of Education Madeleine Kunin said today that learners must be at the center of education improvement efforts and cited the direct lending program as a prime example of the new federal commitment to customer service.

Kunin spoke at Old Dominion University, one of the first schools in the nation to participate in the new direct loan program.

"Under this new initiative, students can receive loans directly without middle men. We save money and borrowers find it easier," Kunin said. "When Vice President Gore called for a government that works better and costs less, he could have been talking about direct lending."

Kunin's visit came on Customer Service Day, marked by the White House release of a report, "Putting Customers First: Standards for Serving the American People." Kunin sits on President Clinton's Management Council and is charged by Education Secretary Richard Riley with directing efforts to bring greater efficiency and customer service to the federal education agency. Riley observed the day with a visit to Hood College in Frederick, Md. Other cabinet secretaries and agency heads held similar events in cities across the country.

Kunin said the mission of the U.S. Department of Education is to ensure equal access to education and to promote educational excellence throughout the national.

"We know that states and communities have the primary responsibility for education," Kunin said, "but there are ways the federal government can help as a partner. We believe the federal education department can provide three essential services: offering leadership and strengthening partnerships for educational improvement; administering education programs; and meeting customers' information needs.

For example, Kunin said, "The Goals 2000: Educate America Act, signed by President Clinton this past March, provides help to states and communities seeking to bring high academic standards to all students. We're also begun a national effort, involving a coalition of more than 60 organizations, to bring greater attention to the critical role that parents play in student achievement.

"We're looking within the department for ways to improve the way we manage federal education programs. We want to give more flexibility to those who receive department funds. We know we can make better use of technology. We all must work smarter and accomplish more."

Hood College and Old Dominion University are two of the 104 schools now offering direct student loans. The new loans will be available at more than 1,000 schools next academic year.

Direct lending will save taxpayers an estimated $4.3 billion through fiscal year 1998 by eliminating excess profits in the current system and capitalizing on the federal government's ability to borrow at a lower interest rate. A streamlined system offering "one-stop shopping" will make borrowing easier for students.