Student Loans:

Direct Loans Could Save Billions in First 5 Years With Proper Implementation

HRD-93-27: Published: Nov 25, 1992. Publicly Released: Nov 25, 1992.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed potential savings to the government by using direct rather than guaranteed loans to provide assistance to postsecondary school students, focusing on: (1) how direct loans achieve cost savings; and (2) the impact of direct lending on financial institutions.

GAO found that: (1) direct student loans could save the federal government about $4.8 billion for loans made in fiscal years 1994 through 1998; (2) the government could use interest earnings from direct student loans to curtail program costs; (3) lower program costs would lessen start-up and administrative costs, but not offset federal cost savings; (4) savings derived from Stafford loans could total $3.2 billion; and (5) there were concerns about whether the Department of Education could efficiently administer the program nationally.

Sep 12, 2016

Aug 8, 2016

Jun 15, 2016

May 19, 2016

May 17, 2016

Apr 11, 2016

Mar 16, 2016

Feb 8, 2016

Dec 14, 2015

Nov 30, 2015

Looking for more? Browse all our products here