A series of recommendations is presented for reducing default rates in the Guaranteed Student Loan (GSL) program. First, a summary is provided of trends toward the increasing dependence of students on loans to finance their college education and the large and growing default rate among borrowers. Next, four issues are discussed: Should lenders…

The role and history of the United States Aid Funds, which guarantees student loans made by conventional lenders, and developments at the state and federal levels are addressed. United Student Aid Funds, which helped open private credit markets to student borrowers, operates in all 50 states and U.S. territories. The events and people that helped…