Ensuring Continued Access to Federal Student Loans
Despite actions by Congress and Education to address the recent credit market disruptions, concerns have been raised about the Department of Education's ability to ensure that students have continued access to federally guaranteed student loans in the event that a significant number of lenders substantially reduce or cease their participation in the program.
- The inability to obtain student loans may be a problem for some students — in
particular, minority and low-income students, who rely more heavily on these
loans and who have historically been less likely to attend college.
Highlights of GAO-07-64 (PDF), Highlights of GAO-07-926T (PDF)
- Concerns remain about the long-term viability of the Federal Family Education Loan Program and the ability of the Direct Loan program to expand quickly enough, if necessary, to provide uninterrupted access to federal student loans.
- A sustained focus on Education's capacity to service these loans is needed, given expected increases in Direct Loan volume and the potential for lenders to sell a large volume of their FFELP loans to Education in the next 2 years.
^ Back to topWhat Needs to Be Done
- To protect students and parents from paying unnecessarily high interest
rates and fees because of improper lending activities among Federal Family
Education Loan Program participants, Education should be more proactive in
examining situations involving possible improper inducements and limitations
on borrower choice and establish a protocol for determining appropriate responses
to such instances of noncompliance.
Highlights of GAO-07-750 (PDF)
- Education should improve human capital management planning in its Office
of Federal Student Aid.
Highlights of GAO-05-31 (PDF)
^ Back to topKey Reports
- Higher Education: Tuition Continues to Rise, but Patterns Vary by Institution Type, Enrollment, and Educational Expenditures
- GAO-08-245, November 28, 2007
- Summary (HTML) Full Report (PDF, 32 pages) Accessible Text
- Federal Family Education Loan Program: Increased Department of Education Oversight of Lender and School Activities Needed to Help Ensure Program Compliance
- GAO-07-750, July 31, 2007
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 54 pages) Accessible Text Recommendations (HTML)
- Low-Income and Minority Serving Institutions: Education Has Taken Steps to Improve Monitoring and Assistance, but Further Progress Is Needed
- GAO-07-926T, June 4, 2007
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 18 pages) Accessible Text
- Capital Financing: Department Management Improvements Could Enhance Education's Loan Program for Historically Black Colleges and Universities
- GAO-07-64, October 18, 2006
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 51 pages) Accessible Text Recommendations (HTML)
