Stafford Student Loans: Lower Subsidy Payments Could Achieve Savings Without Affecting Access
HRD-92-7
Published: Jan 06, 1992. Publicly Released: Jan 06, 1992.
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Highlights
GAO reviewed the Stafford Student Loan Program, focusing on the potential effect of lower federal subsidy rates on the volume of Stafford loans supplied by commercial lenders.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should lower the special allowance factor to 3 percent. |
Closed – Implemented
|
Section 438(b)(6) of the Higher Education Act of 1965 was amended effective October 1, 1992, Public Law No. 102-325, to lower the special allowance factor to 3.1 percent. |
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Topics
CapitalCost controlFederal aid programsGovernment guaranteed loansInterest ratesLending institutionsStudent financial aidStudent loansSubsidiesStudents