Consolidated Student Loans: Borrowers Benefit but Costs to Them and the Government Grow
HRD-90-8
Published: Jun 15, 1990. Publicly Released: Jun 15, 1990.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the impact of the student loan consolidation program under the Higher Education Amendments of 1986.
Recommendations
Matter for Congressional Consideration
Matter | Status | Comments |
---|---|---|
If Congress wishes to retain and reauthorize the program and maintain the benefits to students with loan consolidations, while reducing program costs, it may wish to consider: (1) charging consolidated loan borrowers a loan origination fee; (2) increasing the minimum interest rate on consolidated loans; or (3) reducing the lenders' special allowance payment rate. |
Closed – Implemented
|
Congress adopted part (3) of the recommendation in the Higher Education Amendments of 1992, Public Law 102-325. The other two parts were not adopted and it is unlikely Congress will adopt them in the forseeable future. |
Full Report
Office of Public Affairs
Topics
Aid for educationCollege studentsGovernment collectionsGovernment guaranteed loansLending institutionsLoan defaultsLoan repaymentsStudent financial aidStudent loansStudent loan repayment program