Defaulted Student Loans: Private Lender Collection Efforts Often Inadequate

摘要

The report discusses controls established to reduce the costs of defaulted guaranteed student loans. Since 1965, the Department of Education, through 47 loan guaranty agencies, has paid over $4 billion to lenders for defaulted loans made through the Guaranteed Student Loan Program Increasing default costs prompted GAO to evaluate whether the policies and procedures used by the Department and the guaranty agencies in paying default claims adequately protect the federal government's financial interest and minimize unnecessary federal insurance costs.