About 1,400 institutions nationwide participate in the program that provides federal student loan funds directly to universities and colleges, eliminating the role played by banks. Instituted in 1994 by the U.S. Department of Education on a pilot basis at 104 colleges, including Brockport State College, the program was expanded this year. UB joined the program in June.

Following a demonstration of the process UB is using to award federal direct student loans, Riley joined UB students and administrators, Congressman John LaFalce, UB President William R. Greiner and Brockport President John E. Van de Wetering for a roundtable discussion on student loans.

Funding for the direct lending program could be in jeopardy as the Senate and the House of Representatives fight to balance the federal budget over the next seven years, Riley told participants.

The new leadership in Congress has proposed a balanced budget that, over the next seven years, would cut funding for higher education by $36 million. "Part of that is student financial aid," Riley said. President Clinton also has proposed a balanced budget ("Notice both are balanced budgets," Riley said.) that over the same seven-year period has a $40 million increase in education funding. "I think that says it all in terms of priorities," he said.

The United States has "the most wonderful" system of higher education in the world, but 70 percent of students need some type of financial help in order to attend college, according to Riley. "It's no opportunity at all if you don't get to be part of the higher education system in this country. It would be a shame if you didn't have that opportunity (to attend college) and we want to make sure you continue to have that opportunity."

But Congress, he said, wants to eliminate the direct loan program, which is "the most false, ridiculous thing I ever saw." The Senate's "more moderate version" proposes capping the number of schools offering direct lending at 20 percent; more than 35 percent of colleges currently participate in the direct lending process, he added.

Students gathered for the roundtable discussion voiced the need for continuing financial aid and support of the direct loan program.

"If I don't have financial aid it will hinder my education....Do they realize students are voters too?" said Deana Savage, a pre-med student at UB. "We need the loans. We need the financial aid to be available. I don't just need the money for tuition. I need it to live off. I realize you're working to cut the deficit, but there has to be another way."

In response, LaFalce urged students to write their congressmen to voice their concerns about cuts to financial aid. "Your voices are not being heard. The voices that are being heard are the institutions that are making a profit on the loans....You must make your voices heard," he said.

Shelaine Rigby, a senior majoring in management, told the education secretary that in a sense the future of the United States rests on student loans.

"We are the future. We are the ones who are going to be building the nation. If we don't get these loans and don't have funds available to attend college, you're looking at a sad future," she said.

Riley agreed that education is vital to the future. "Education is what has moved the country forward....Everyone in this country wants their children to go to college," he said. "We have never had a golden age of education for everyone. That's what we ought to be working toward."

Jennifer Mengay, a UB sophomore who also works in the financial aid office, noted that students need to be more aware of changes in the financial aid process and the danger the program is in.

Elias Eldayrie, director of the Office of Financial Aid to Students, called the direct loan program "a great program and the best thing that ever happened to our students." He noted that being able to award loans directly has substantially cut the amount of time it takes for students to receive their checks, also reducing the number of short-term emergency loans that students often were forced to take out in order to meet their expenses.

Noting that his institution took a tremendous risk in joining the new direct lending program in its first year, Brockport President Van de Wetering said it is "unconscionable" to so abruptly end such a successful program that was begun only two years ago.

Leonard Snyder, UB associate vice president and controller, called the direct loan program "a tremendous and positive change in the way funds come to the university." He added that the program has been implemented without adding additional employees to any university office, including accounting and financial aid.

President Greiner noted that the program has saved 24,000 person hours in administrative costs. "University at Buffalo students are some of the finest persons I've ever met in terms of their dedication and they deserve the convenience." He added that the direct student loan program "is such a winner" that he is "appalled" that Congress would even consider eliminating it.