Default Rates at Historically Black Colleges and Universities
HRD-93-117FS: Published: Aug 19, 1993. Publicly Released: Aug 19, 1993.
- Full Report:
Pursuant to a congressional request, GAO provided information on federally guaranteed student loans and loan defaults for students attending historically black colleges and universities (HBCU), focusing on: (1) the amount of Federal Family Education Loans (FFEL) made to HBCU students; (2) default rates and the amount of defaulted loans for HBCU; and (3) the number of HBCU in fiscal year 1994 that could lose their FFEL eligibility or be subject to a state review organization evaluation.
GAO found that: (1) of the $13.5 billion in FFEL made in 1991, about 3 percent or $372 million went to students attending HBCU; (2) the HBCU default loan volume for 1990 totalled $45 million; (3) between 1987 and 1990, HBCU default rates varied between 21 and 27 percent and accounted for more than 3 percent of all cohort defaults; and (4) about one-third of HBCU may lose their FFEL eligibility in fiscal year 1994 and up to 75 percent of HBCU could be subject to state reviews because of continued high cohort default rates.