Skip to main content

Guaranteed Student Loans: Profits of Secondary Market Lenders Vary Widely

HRD-90-130BR Published: Sep 28, 1990. Publicly Released: Sep 28, 1990.
Jump To:
Skip to Highlights

Highlights

Pursuant to a congressional request, GAO reviewed the activities of secondary market lenders that purchase loans made under the Department of Education's Stafford Student Loan Program to determine the: (1) lenders' rates of return or profitability on Stafford loans during fiscal years 1985 through 1988; (2) reasons for varying levels of profitability among those lenders; and (3) effects of the 1986 subsidy reductions on profitability.

Full Report

Office of Public Affairs

Topics

Government guaranteed loansHigher educationLending institutionsLoan interest ratesProfitsState programsStudent financial aidStudent loansSubsidiesSecondary markets