Student loan defaults: Department of Education limitations in sanctioning problem schools: report to the Ranking Minority Member

Original publisher: Washington, D.C. (P.O. Box 37050, Washington 20013) : The Office, [1995]. OCLC Number: (OCoLC)37563200 Subject: Federal aid to higher education -- United States. Excerpt: ... B-255079 government for the cost of loans that are made and that may subsequently default, in the event that the schools ' appeals are unsuccessful. As a measure of further protection of the government's interests, the Congress also may wish to consider granting the Secretary the authority to require schools to post a performance bond as a condition of filing an appeal as well as the discretion in determining under which circumstances a bond would be required of schools. We requested comments on a draft of this letter from the Secretary of Agency Comments Education or his designee. On May 19, 1995, we received verbal comments and Our Evaluation from representatives of the Department's Offices of General Counsel and Postsecondary Education. They generally agreed with the results of our findings. They suggested several technical changes, which we incorporated in the letter, as appropriate. Copies of this report are being sent to the Ranking Minority Member, Permanent Subcommittee on Investigations, Senate Committee on Government Operations; the Chairman, Senate Labor and Human Resources Committee; the Chairman, House Economic and Educational Opportunities Committee; the Director, Office of Management and Budget; the Secretary of Education; and other interested parties. Please call me at ( 202 ) 512-7014 if you or your staff have any questions about this report. Major contributors include Joseph J. Eglin, Jr., Assistant Director; Charles H. Shervey; and Jonathan H. Barker. Sincerely yours, Cornelia M. Blanchette Associate Director, Education and Employment Issues Page 13 GAO / HEHS-95-99 Student Loan Default Data