For-profit colleges do not always recruit aggressively; nor do they always shortchange students. But the problem of colleges systematically overpromising and underdelivering, when it does happen, has largely been a for-profit phenomenon. The abuses have been the most widespread and most damaging when they have been fueled by government grants and…

This paper examines the rise in student loan default and delinquency. It draws on a unique set of administrative data on federal student borrowing matched to earnings records from de-identified tax records. Most of the increase in default is associated with borrowers at for-profit schools, 2-year institutions, and certain other nonselective…

The student loan default rate was 9.6% in 1996, a decline of 12.8% since the 1990 peak, saving the federal government $3 billion over six years. Since 1993 the Department of Education has barred 1065 institutions, mostly for-profit trade schools, from participating in federal student loan programs; institutions with a 40% default rate can lose…

This report provides information on the default rates in the Stafford Student Loan Program for schools accredited by seven agencies: Accrediting Bureau of Health Education Schools; Accrediting Council for Continuing Education and Training (ACCET); Association of Independent Colleges and Schools; National Accrediting Commission of Cosmetology Arts…

This report examines the effectiveness of recent federal government efforts through amendments to the Higher Education Act (1993) to reduce student loan defaults. Key measures to curb defaults had been to make schools with high student loan default rates ineligible for federal student loan programs. However, many institutions have challenged…

This hearing before the Committee on Banking, Housing, and Urban Affairs, addresses the implications of the anticipated failure of the Higher Education Assistance Foundation (HEAF), the largest guarantor of student loans. HEAF's difficulties have affected Sallie Mae (Student Loan Marketing Association), and have raised general questions about the…

This report presents the testimony of the Associate Director of Education and Employment Issues of the Health, Education, and Human Services Division of the General Accounting Office (GAO) concerning the participation of postsecondary institutions in the Federal Family Education Loan Program (FFELP), which makes direct student loans to students.…

As part of a larger program to identify and analyze federal programs at high risk for waste, fraud, abuse and mismanagement, this publication presents an evaluation of the Federal Family Education Loan Program (FFELP), formerly the Guaranteed Student Loan Program. The analysis argues that the program has not been successful in protecting the…

Largely because of high student loan default rates, much of the criticism of federal aid programs has focused on policies and practices affecting the participation of proprietary schools in federal student aid. This report reviews alternative indicators of school performance that are currently used or could be used by the federal student aid…

This report summarizes the accomplishments of the U.S. Department of Education, Office of Inspector General (OIG), for the 6-month period ending March 31, 1993. An audit and inspection of student financial assistance programs administered by the Office of Postsecondary Education found that many postsecondary vocational training programs are funded…