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Student Loans: Default Rates at Historically Black Colleges and Universities

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Report Type Reports and Testimonies
Report Date Aug. 19, 1993
Report No. HRD-93-117FS
Subject
Summary:

Of the $13.5 billion in Federal Family Education Loans made in fiscal year 1991, $372 million--less than three percent--went to students attending historically black colleges and universities. The loan default volume at these institutions for fiscal year 1990 was $45 million. Average annual default rates for loans made to students attending historically black colleges and universities ranged from 21 to 27 percent during fiscal years 1987-90. If these default rates remain steady for fiscal years 1990-92, nearly one-third of the 105 historically black colleges and universities will lose their eligibility for the federal loan program in fiscal year 1994. In addition, as many as three-fourths of these institutions could be subject to a state review to determine their continued eligibility for participating in federal student assistance programs.

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