ERIC Number: ED353906
Record Type: Non-Journal
Publication Date: 1992-Dec
Reference Count: N/A
Guaranteed Student Loans: GAO High Risk Series.
Comptroller General of the U.S., Washington, DC.
As part of a larger program to identify and analyze federal programs at high risk for waste, fraud, abuse and mismanagement, this publication presents an evaluation of the Federal Family Education Loan Program (FFELP), formerly the Guaranteed Student Loan Program. The analysis argues that the program has not been successful in protecting the taxpayers' financial interests. It is noted that in 1991, the federal government paid out $3.6 billion to make good its guarantee on defaulted student loans, continuing a trend of escalating losses. Several fundamental problems in the student loan program's structure and management are noted: the federal government has tended to emphasize access to loans at the expense of accountability; the structure of the program is too complex and participants have little or no incentive to prevent defaults; and lenders, schools, and guaranty agencies benefit from making loans, but generally do not bear any financial risk. In addition, the Department of Education has failed to weed out schools that collect tuition payments for marginal instruction, its records have been inaccurate and incomplete, and it has conducted little oversight of lenders and guaranty agencies. Included are recommendations for change and a list of other High Risk series publications. (JB)
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Comptroller General of the U.S., Washington, DC.
Identifiers - Laws, Policies, & Programs: Family Education Loan Program