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Student Loans Default Rates Need to Be Computed More Appropriately

By Hembra, Richard L.

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Book Id: WPLBN0000172241
Format Type: PDF eBook
File Size: 0.2 MB
Reproduction Date: 2005
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Title: Student Loans Default Rates Need to Be Computed More Appropriately  
Author: Hembra, Richard L.
Language: English
Subject: Government publications, Accountability in government, United States. General Accounting Office
Collections: Government Library Collection, Government Accountability Integrity Reliability Office Collection
Publication Date:
Publisher: United States General Accounting Office (Gao)


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Hembra, R. L. (n.d.). Student Loans Default Rates Need to Be Computed More Appropriately. Retrieved from

Government Accountability Integrity Reliability Office Collection

Excerpt: Two major federal student loan programs, the Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan Program (FDLP), provide funding that is vital to helping students meet their postsecondary education costs. FFELP, formerly known as the guaranteed student loan program, provides loans through private lenders such as banks. These loans are insured against default by state or nonprofit guaranty agencies, which are later reimbursed by the Department of Education. FDLP, often referred to as the direct loan program, provides loans from the federal government through students? schools. The first FDLP loans were made in the fourth quarter of fiscal year 1994. The Department uses student borrowers? experiences with loans from FFELP and FDLP for determining a school?s default rate.


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