Supplemental Student Loans:

Legislative Changes Have Sharply Reduced Loan Volume

HRD-90-149FS: Published: Aug 3, 1990. Publicly Released: Aug 3, 1990.

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Pursuant to a congressional request, GAO provided information on the possible impact of revised eligibility requirements on the volume of Supplemental Loans for Students (SLS).

GAO found that: (1) SLS volume has dropped substantially since the revised eligibility requirements became effective; (2) the overall volume for the 10 guaranty agencies it studied was almost 46 percent lower during the four months of 1990 than during the same period in 1989; (3) recent legislative changes have had a significant effect on loans to students attending proprietary schools; and (4) the SLS volume for proprietary students decreased more than the overall volume decrease.

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