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ERIC Number: ED097832
Record Type: Non-Journal
Publication Date: 1974-Sep-17
Pages: 42
Abstractor: N/A
Reference Count: N/A
Examination of Financial Statements of Student Loan Insurance Fund Fiscal Year 1973.
Comptroller General of the U.S., Washington, DC.
This document examines the fiscal year 1973 financial statements of the Student Loan Insurance Fund, administered by the Office of Education, Department of Health, Education, and Welfare. Findings indicate: (1) The automated Guaranteed Student Loan System (GSLS) contains inaccurate data files and computer programs that do not process the data correctly. (2) OE estimates that future losses on loans insured or reinsured as of June 30, 1973, will amount to $302,627,000. Including these losses in the Statement of Financial Condition results in a deficit of $258 million instead of a surplus of approximately $44 million. (3) OE estimated the default rate to be 17.2 percent for loans insured since program inception and 10.1 percent for loans reinsured as of June 30, 1973. (4) Collection action is not started promptly or pursued adequately to either obtain payments or determine that the loan is uncollectible. (5) OE is authorized to charge an insurance premium rate of one-fourth of 1 percent on loans insured directly by the government. A comparison of premium income with recognized and anticipated losses indicates that a premium rate of 4 percent would be required to finance the insurance. (6) OE does not consolidate information on the GSLS program. However, such information is necessary to enable either the Congress or OE to evaluate the program's effectiveness in relation to its cost. Financial statements are included. (MJM)
U. S. General Accounting Office, Room 4522, 441 G Street, N. W., Washington, D. C. 20548 (Order No. B-164031; $1.00)
Publication Type: Numerical/Quantitative Data
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: Comptroller General of the U.S., Washington, DC.
Identifiers - Laws, Policies, & Programs: Guaranteed Student Loan Program