Defaulted Student Loans:
Analysis of Defaulted Borrowers at Schools Accredited by Seven Agencies
HRD-90-178FS: Published: Sep 12, 1990. Publicly Released: Sep 12, 1990.
- Full Report:
Pursuant to a congressional request, GAO provided information on the default rates in the Department of Education's Stafford Student Loan Program for postsecondary schools accredited by seven agencies.
GAO found that: (1) the number of schools accredited by the agencies ranged from 16 to 781; (2) the number of borrowers in repayment by accrediting agency ranged from 16,413 to 353,872, and the loan defaults per agency from about $12.9 million to $230.8 million; (3) two agencies had the highest default rate of 38 percent, while schools with multiple accreditation had the lowest rate of 24 percent; and (4) Education established regulation in July 1989 that required schools with default rates over 20 percent to prepare default management plans.