Consolidated Student Loans: Borrowers Benefit but Costs to Them and the Government Grow
HRD-90-8
Published: Jun 15, 1990. Publicly Released: Jun 15, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed the impact of the student loan consolidation program under the Higher Education Amendments of 1986.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| If Congress wishes to retain and reauthorize the program and maintain the benefits to students with loan consolidations, while reducing program costs, it may wish to consider: (1) charging consolidated loan borrowers a loan origination fee; (2) increasing the minimum interest rate on consolidated loans; or (3) reducing the lenders' special allowance payment rate. | Congress adopted part (3) of the recommendation in the Higher Education Amendments of 1992, Public Law 102-325. The other two parts were not adopted and it is unlikely Congress will adopt them in the forseeable future. |
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Topics
Aid for educationCollege studentsGovernment collectionsGovernment guaranteed loansLending institutionsLoan defaultsLoan repaymentsStudent financial aidStudent loansStudent loan repayment program