He also cites concerns about the management ofthe plan by the government. "One major worry wehave is that when costs go up, government may wantto exercise control over colleges," he says. "Thisscares us with the possibility of the governmenttrying to tell schools things like how manyclasses professors should teach."
But Cheever also acknowledges that "the presentprogram is much too complicated and the newsystems is worthy trying."
He says all parties must be careful to keep aneye on costs.
Getting Involved
The competition to become one of the first 105schools to try direct lending was stiff, in spiteof worries that the program would not be popularwith some in higher education.
Out of approximately 1,100 schools thatvolunteered to participate, Harvard and Radcliffewere chosen based on their good records foradministering students loans as well as theircommitment to the program from the beginning,Hicks says.
Harvard was in the position of being one ofabout only 30 schools in the nation to be a lenderunder the old system, so it had the vantage pointof being involved on both sides of the lendingprocess, Hicks says.
"We were probably the only lender in the nationin favor of reform," she says.
Part of the reason Harvard pushed for theprogram was that it had experience in dealingdirectly with the government on loans through theold Perkins Loan Program, Hicks says. Workingunder that program, University officials saw thateliminating secondary institutions eased the loanprocess.
Harvard is one of four Massachusetts schools tobe part of this initial program. Amherst,Stonehill and Williams Colleges are the others.
At Williams, all students applying for aid forthe first time will go through the direct program,while students already receiving loans willcontinue with their present program, according toWilliams Director of Financial Aid Philip G. Wick.
Wick echoes Hicks' optimism about the program.
"I think the direct loan program will eliminatethe middle man so there will be no hoops orhurdles for students and they can deal directlywith the institution," Wick says. "I also think itshould significantly speed things up, by cuttingdown on bureaucratic delays...if the Department ofEducation does things right."