The Nation - News from July 19, 1988

President Reagan took time during his vacation at his ranch in the Santa Ynez Mountains to sign legislation tightening provisions of a federal loan program for college students. The legislation sets more stringent review and eligibility rules for the Supplemental Loans for Students program, which enables qualified students to borrow up to $4,000 a year at near-market interest rates. The Education Department has expressed concern that excessive loans and loans to ineligible students helped push the volume of the program from $256 million in fiscal 1986 to $687 million in fiscal 1987.