This statement of the Director of Education and Employment Issues of the General Accounting Office's Human Resources Division discusses how the Stafford Student Loan program works, the growth in loans guaranteed and defaulted, and the concerns surrounding the financial problems being experienced by the Higher Education Assistance Foundation…

This guide provides information to help postsecondary schools and guaranty agencies (GAs) understand how a cohort default rate is calculated, review backup data, submit challenges to GAs and/or Direct Loan Servicing Centers (DLSC), and understand the response from the GA and/or DLSC. A cohort default rate includes Federal Family Education Loan…

This report examines how the Department of Education calculates the default rate for two federal student loan programs--the Federal Family Education Loan program (FFELP) and the William D. Ford Federal Direct Loan Program (FDLP). The report focuses on three questions regarding these programs: (1) whether there has been an increase in the number of…

Many individuals with disabilities may have attempted college either before or after they became disabled. If prior college attempts were unsuccessful, the student may have defaulted on student loans. When the loans are secured by the federal government, the individual will not be eligible for further financial assistance, including all federal…

State low-interest college loans programs for middle-class families have emerged in response to restrictions on federally subsidized Stafford Loans. The key difference between federal and state programs is that most state programs require student borrowers and cosigners to prove good credit risks, reducing loan default and making the programs…

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…

Examined the influence of student debt load on college persistence using data from the National Postsecondary Aid Survey of 1992-93 and a model of student persistence that includes either total accumulated debt or threshold of accumulated debt. Findings indicated threshold of accumulated debt was a more effective method of examining student debt…

A study was done to evaluate the ability of medical residents to repay their Stafford loan educational debt with a repayment deferment limit of 2 years. Using data on 1990 medical school graduates, the study compared medical residents' educational debt burdens to a financial hardship indicator keyed to loan default prevention. Results indicated…

This study examined the rate of participation in, and default on loans from, the Federal Parent Loans for Undergraduate Students (PLUS) and the Federal Supplemental Loans for Students (SLS) programs. In particular the study sought to know the volume of loans made to students or parents of students attending proprietary (trade) schools and other…

In 1998, Congress amended the Higher Education Act (HEA) and established the Office of Federal Student Aid (FSA) as a performance-based organization. The Act called for the FSA to develop 5-year plans annually, issue annual reports, and consult with stakeholders regarding the program delivery system. The General Accounting Office (GAO) initiated a…

This hearing was held to consider whether the student loan programs of the Department of Education place tax dollars at risk. In his opening remarks, Representative John L. Mica (Florida) pointed out that for nearly 10 years, the U.S. General Accounting Office has labeled these programs as a high risk for fraud, waste, abuse, and mismanagement. In…

A brochure describes how student loan default can cause permanent damage to an individual's financial future. and how to prevent default. A student loan is a legal promise. In exchange for help funding one's education, a promise is made to repay the education loan. The promise is made by signing a Promissory Note for any funds borrowed. Loan…

Data from three national databases were used to investigate the relationship between college student characteristics and college characteristics and patterns in loan repayment and default. Analysis suggested that repayment/default behavior can be predicted by precollege, college, and postcollege characteristics of individual borrowers but not by…

This article examines a 1993 decision by the District of Columbia Circuit Court of Appeals, which upheld the right of the Atlanta College of Medical and Dental Careers, Inc., to appeal the U.S. Department of Education's decision to eliminate it from the federal student loan program because of high loan default rates. (MDM)

This report lists postsecondary schools with official student loan default rates of 40.0 percent or greater for fiscal year 1996. Schools are listed in state order. Provided for each listing is a code indicating the types of loan programs in which the school is currently participating, an identification number, school name and address, the fiscal…