ERIC Number: ED161324
Record Type: Non-Journal
Publication Date: 1978-May-2
Reference Count: N/A
Status of Office of Education's National Direct Student Loan Funds at Selected Postsecondary Education Institutions. Report by the Comptroller General of the United States.
General Accounting Office, Washington, DC. Div. of Human Resources.
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)
Descriptors: College Administration, College Students, Compliance (Legal), Educational Finance, Federal Aid, Federal Programs, Financial Support, Higher Education, Loan Repayment, School Funds, Student Financial Aid, Student Loan Programs
U.S. General Accounting Office, Washington, D.C. 20548
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: General Accounting Office, Washington, DC. Div. of Human Resources.
Identifiers - Laws, Policies, & Programs: National Direct Student Loan Program