Direct Student Loans: Efforts to Resolve Lenders' Problems With Consolidations Are Under Way

Pursuant to a congressional request, GAO reviewed problems lenders had with William D. Ford Federal Direct Loan Program (FDLP) consolidation loans, focusing on: (1) the nature and source of problems Federal Family Education Loan Program (FFELP) lenders have encountered in the direct loan consolidation program; (2) whether these problems affected lenders; and (3) steps the Department of Education and its contractor, Electronic Data Systems (EDS) are taking to correct these problems.