STUDY OF ROLE OF GUARANTY AGENCIES.

SEC. 1401. STUDY OF ROLE OF GUARANTY AGENCIES. (a) Study.— The Secretary of Education shall review the role of guaranty agencies within the Federal Family Education Loan Program by examining the administrative and financial operations of such agencies and the relationships between guaranty agencies and State governments. (b) Report.— The Secretary of Education shall report to the Congress within 1 year of the date of enactment of this Act on the study described in subsection (a). Such report shall consider and make recommendations concerning— (1) increasing the role of guaranty agencies in oversight and licensing of proprietary trade schools under the Federal Family Education Loan Program; 106 STAT. 817 (2) strengthening Federal disincentives for high default rate portfolios; (3) consolidating guaranty agencies regionally or otherwise; (4) eliminating the role of guaranty agencies within the Federal Family Education Loan Program; and (5) the compensation of chief executive officers and managerial staffs of guaranty agencies.