Items related to Oversight of the Direct Student Loan Program (Classic...

Oversight of the Direct Student Loan Program (Classic Reprint) - Softcover

United States; Congress; Senate; Committee On Labor And Human Resources; Subcommittee On Education

 
9781332274048: Oversight of the Direct Student Loan Program (Classic Reprint)

Synopsis

This book evaluates the implementation of the Federal Direct Loan (FDL) program, a funding mechanism intended to simplify student loan acquisition. The FDL program was created in response to high student loan default rates within the Guaranteed Student Loan Program (GSLP). The complexities of the GSLP structure led to these high defaults. The FDL program created a direct lending relationship between the federal government and students through schools and contractors to reduce these high defaults. Now in its second year, this report evaluates the FDL program's implementation, costs, and its comparability to the GSLP. Several issues are identified. Some schools express concern about limited resources for implementing the FDL program while others have concerns about the future of the program itself. The report concludes that as the FDL program enters its second year, the findings can inform members of the subcommittee and the public about the new loan disbursement process as well as future plans for loan collection and servicing.

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