ERIC Number: ED230095
Record Type: Non-Journal
Publication Date: 1982-Dec-1
Reference Count: N/A
Actions Underway to Reduce Delinquencies in the Health Professions and Nursing Student Loan Programs.
Comptroller General of the U.S., Washington, DC.
The problem of loan payment delinquency in the Health Professions and Nursing Student Loan Programs was reviewed. Problems that schools have had in billing and collecting outstanding loans and the lack of effective program monitoring by the Department of Health and Human Services (DHHS) were assessed, along with the DHHS' efforts to correct the problems. Specifically, the review focused on: the accounting, billing, and collection policies and procedures of 23 colleges; the amount of delinquent loans, bad debts, and federal funds held; and 1,430 student loan files. It was found that too little emphasis was placed on billing and collection, resulting in 28 percent of borrowers being behind in their payments. Some schools held large amounts of federal funds and some invested the funds but did not return the earnings to the programs. It is concluded that the program provides borrowers little incentive to repay loans promptly, although many delinquent borrowers have good credit ratings in the private sector. Although the DHHS has neither effectively monitored collection activities nor kept accurate accounting records, the agency is taking administrative actions and making legislative proposals that will strengthen the collection effort. Recommendations to remedy the loan delinquency problem are offered. (SW)
Descriptors: College Role, Federal Aid, Government School Relationship, Higher Education, Investment, Legal Responsibility, Loan Repayment, Medical Students, Money Management, Nursing Education, Nursing Students, School Accounting, Student Loan Programs
U.S. General Accounting Office, Document Handling and Information Services Facility, P.O. Box 6015, Gaithersburg, MD 20760.
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Comptroller General of the U.S., Washington, DC.