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Student Loans: Improvements in the Direct Loan Consolidation Process

HEHS-99-19R Published: Nov 10, 1998. Publicly Released: Nov 10, 1998.
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Highlights

Pursuant to a congressional request, GAO provided information on the William D. Ford Federal Direct Loan Program's (FDLP) and the Federal Family Education Loan Program's (FFELP) loan consolidation process, focusing on: (1) whether FFELP lenders believe that Electronic Data Systems' (EDS) consolidation processing has improved since the December 1, 1997, reopening of the FDLP consolidation system to new applications; (2) the extent to which problems in the data transmission between EDS and the FDLP servicing system have been resolved; and (3) how quickly EDS has been processing consolidation applications for borrowers who applied after December 1, 1997, and whether the Department of Education believes EDS could promptly process a substantially greater inflow of applications.

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Accounting errorsData integrityDebt collectionDirect loansElectronic data interchangeLending institutionsLoan accounting systemsLoan repaymentsOverpaymentsStudent loans