The status of the U.S. Office of Education-sponsored National Direct Student Loan funds at 19 selected postsecondary schools was reviewed. Enabling legislation intended that schools attain a revolving fund status but each school differs in its ability to do this because different loan collection procedures are used. Legislation requires schools to make loans to nearly all eligible students and privacy considerations affect the extent that schools can pursue delinquent borrowers. Direct loan recipients display different payback characteristics depending on the type of institution they attend. This factor could account for part of the difference in the ability of institutions to attain a self-sustaining revolving fund status. The type of school is a major factor related to delinquency rates. Two-year public and proprietary institutions appear to have the greatest problem. It is unlikely that the majority of schools participating in the program will achieve a self-sustaining revolving fund status anytime soon. Management practices at participating institutions are discussed and it is concluded that most schools complied with due diligence requirements. Borrower profiles were developed based on a study of demographic, financial, academic, and direct loan status factors. Borrower characteristics most and least associated with delinquency are outlined. (SW)