Evaluation of the William D. Ford
Federal Direct Loan Program

The five year evaluation of the William D. Ford Federal Direct Student Loan Program includes three major components:

• Institutions' Administration of the Direct Loan Program: The evaluation of institutions' administration will focus on identifying areas where institutions are having problems and also on identifying and disseminating best practices. These data will be collected through mail surveys of Direct Loan institutions and site visits to exemplary and problem schools.

• Borrower Understanding and Repayment Experience: Direct Loan and FFEL borrowers are surveyed to determine their knowledge and understanding of the loan origination and repayment processes. In addition, the repayment experience--choice of repayment option, default, deferment, etc.--of Direct Loan and FFEL borrowers will be tracked and compared over time. Use measures of satisfaction will be obtained through telephone surveys of Direct Loan and FFELP borrowers. Telephone surveys will be conducted both with borrowers who are in-school as well as in-repayment.

• ED's Administration of the Direct Loan Program: The evaluation will focus on the outcomes of ED's administration rather than internal processes with the exception of certain key areas. Outcomes will be assessed mainly through institutions' and borrowers' satisfaction with ED provided information and services obtained in surveys of Direct Loan and FFELP institutions and borrowers.

• Case Study component

• Institutional Surveys

• Borrower Surveys

• ED Assessment component

This study will be completed in September 1998.

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