Direct Student Loans:

Legality of Regulations Authorizing Origination Fee Reduction

B-283717: Published: Sep 29, 1999. Publicly Released: Sep 29, 1999.

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GAO commented on the legality of recent regulations authorizing the reduction of the origination fee charged in the William D. Ford Federal Direct Student Loan Program. In GAO's view, the regulations conflict with a statutory requirement that the Department of Education charge a 4 percent origination fee for loans made under the Direct Loan Program.

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