Menu Search Account

LegiStorm

Get LegiStorm App Visit Product Demo Website
» Get LegiStorm App
» Get LegiStorm Pro Free Demo

Defaulted Student Loans: Preliminary Analysis of Student Loan Borrowers and Defaulters

  Premium   Download PDF Now (20 pages)
Report Type Reports and Testimonies
Report Date June 14, 1988
Report No. HRD-88-112BR
Subject
Summary:

GAO provided information regarding the characteristics of borrowers and defaulters in the Department of Education's Guaranteed Student Loan program.

GAO found that: (1) loans guaranteed through 1987 totalled over $70 billion, with outstanding student debt almost doubling during the last 5 years; (2) during the same 5-year period, defaults increased by 276 percent, with federal default claims amounting to about $1.3 billion in 1987; and (3) of approximately 1.18 million borrowers who obtained their last guaranteed loan in 1983, over 228,000, or about 18 percent, had defaulted as of September 1987. GAO also found that: (1) default rates varied according to borrowers' family-income levels, the type of school attended, the number of years attended, and the degree of financial independence; (2) students enrolled at vocational schools, financially independent, and attending school for 1 year or less had default rates of 35 percent, 28 percent, and 33 percent, respectively; and (3) students attending 2- and 4-year schools, receiving family financial assistance, and attending school for more than 1 year had default rates of 12 percent, 15 percent, and 11 percent, respectively.

« Return to search Government Accountability Office reports