United States General Accounting Office GAO Report to the Chairman, Committee on the Budget, House of Representatives January 1997 STUDENT LOANS Selected Characteristics of Schools in Two Major Federal Loan Programs GAO/HEHS-97-45 United States GAO General Accounting Office Washington, D.C. 20548 Health, Education, and Human Services Division B-275721 January 31, 1997 The Honorable John R. Kasich Chairman, Committee on the Budget House of Representatives Dear Mr. Chairman: Federal support for student financial aid contributed about $35 billion to postsecondary education in fiscal year 1995. Most of this aid—$27 billion— was provided through student loans, authorized under the Higher Education Act of 1965, as amended. Eligible postsecondary institutions can choose to give students access to federally supported loans through either the William D. Ford Federal Direct Loan Program (FDLP) or the Federal Family Education Loan Program (FFELP).1 The Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66, Aug. 10, 1993) called for FDLP to provide 5 percent of federal student loans during school year 1994-95, increasing to at least 60 percent by school year 1998-99. You asked us to provide information about comparative levels of activity in the two programs. As agreed with your staff, we determined the following: • the number of schools in each program, and the distribution of student loans between the two; • the loan default rate for schools associated with each program; and • the number of schools in each program (1) on a state-by-state basis and (2) among the 100 largest postsecondary schools participating in these federal loan programs. Our review was based on computer analysis of records for all postsecondary schools obtained from the Department of Education. Although we did not verify the accuracy of data obtained from the Department, its databases are readily available and can by used by the education community for similar analyses. For more explanation of our scope and methodology, see appendix I. As of October 1996, 1,622 schools were in FDLP (that is, about 26 percent of Results in Brief schools participating in either of the federal loan programs). While many 1 Under FDLP, loans are made by schools on behalf of the government with federal funds. Under FFELP, students receive loans from private lenders, such as banks, with the Department of Education ensuring that the lender will receive payment. Page 1 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 of these schools in FDLP were also in FFELP, the remaining 74 percent of all schools were solely in FFELP. Public 4-year and proprietary schools were the most represented kind of schools in FDLP; 42 and 41 percent of them, respectively, were chosen by the Department to be in the program. The percentage of federal student loan volume provided by FDLP was 7 percent in school year 1994-95 and 30 percent in school year 1995-96. Not enough time has elapsed for loan default information to be available for FDLP. For FFELP, a comparison of default rates for schools that used both programs and schools that used FFELP exclusively showed that rates were similar. For schools in FDLP, the FFELP default rate was 10.2 percent for the fiscal year 1993 cohort year; for schools only in FFELP, the rate was 9.9 percent. Every state has schools in FDLP, although the proportion of schools in the program varies considerably. Thirteen states had more than half of their fiscal year 1995 loan volume at FDLP schools, while 17 states had less than 25 percent. The 100 largest schools—a list that primarily includes 4-year public schools but also includes some community colleges and private 4-year schools—were evenly divided as to whether they were in FDLP. Fifty schools were in FDLP; 50 were not. Eligible postsecondary institutions can choose to give students access to Background federally supported loans through FFELP or FDLP.2 Through FFELP, lenders, mostly from the private sector, make loans to eligible borrowers, and state-designated guaranty agencies guarantee the loans against borrower default. In contrast, FDLP, originally authorized under the Higher Education Amendments of 1992, was established, in part, to simplify the student loan process by eliminating private sector lenders and guaranty agencies. Under FDLP, the government makes the loans, but the schools or Department of Education contractors actually disburse the funds on behalf of the government. The 1993 legislation called for FDLP to be phased in over 5 years, beginning with FDLP loans representing 5 percent of total new loans during year 1 (July 1, 1994, through June 30, 1995) and rising to 60 percent or more in year 5 (July 1, 1998, through June 30, 1999). The Department is responsible for implementing and administering FDLP and for selecting private contractors for the day-to-day servicing of loans. 2 Schools can make FDLP loans to some students and allow other students to obtain loans through FFELP, but a student may not receive both an FDLP loan and an FFELP loan for the same period of enrollment. Page 2 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 As of October 1996, 1,622 schools were in FDLP (that is, about 26 percent of Number of FDLP and all FDLP and FFELP schools). These included 354 schools that entered FDLP FFELP Schools and in year 3 (July 1, 1996, through June 30, 1997). As table 1 shows, a larger Their Loan Volumes percentage of proprietary3 and public 4-year schools were in FDLP than 4-year private and less-than-4-year public and private schools. For the purposes of our analysis, “FDLP schools” are those that the Department expected to participate as of October 1996.4 Most of these schools were also FFELP participants, providing FFELP loans to some students and FDLP loans to others. “FFELP schools” are those that the Department listed as FFELP participants5 as of October 1996 but that were not listed by the Department as “FDLP schools.” Table 1: Types of Schools in FDLP and FFELP, as of October 1996 FDLP schools as a FDLP FFELP percentage of all Type of school schoolsa schools schools Public 4-year 245 335 42% Private 4-year 241 1,192 17 Public less-than-4-year 170 1,345 11 Private less-than-4-year 52 477 10 Proprietary 914 1,341 41 Total 1,622 4,690 26% Note: For further details, see table II.1 in appendix II. a Schools may also be providing FFELP loans. Although table 1 indicates that fewer 4-year schools than proprietary schools are participating in FDLP, 4-year schools accounted for most of the volume of loans for both FDLP and FFELP schools. As shown in figure 1, public 4-year schools accounted for the largest share of loans at FDLP schools; private 4-year schools accounted for the largest share at FFELP schools. 3 Proprietary schools are private, for-profit postsecondary institutions. 4 These schools had applied to participate in FDLP, were determined to be eligible, had not indicated their intent to withdraw from or defer participation in FDLP, and had neither closed nor been terminated by the Department. 5 These were listed in the Department’s Postsecondary Education Participants System as FFELP participants, but may or may not have students that have received FFELP loans. Page 3 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 Figure 1: Fiscal Year 1995 Loan Volume for Schools in FDLP and FFELP, as of October 1996 Dollars in Billions $20 15 10 5 0 FDLP FFELP Proprietary Private Less-Than-4-Year Public Less-Than-4-Year Private 4-Year Public 4-Year As of October 1996, schools that accounted for 38 percent of loan volume in fiscal year 1995 were in FDLP in year 3.6 As shown in table 2, schools accounting for nearly half of public 4-year school loan volume in fiscal year 1995 were in FDLP during year 3. In contrast, schools accounting for less than one-quarter of private 4-year school loan volume in fiscal year 1995 were in the program’s third year. 6 Loan volumes presented in this report are amounts of loan commitments before cancellations. They are not and should not be construed as estimates of current or future loan volume. (See app. I.) Page 4 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 Table 2: Fiscal Year 1995 Loan Volume for Schools in FDLP and FFELP, as of Dollars in millions October 1996 Loans to Loans to FDLP school students students volume as a at FDLP at FFELP Total loan percentage of Type of school schoolsa schools volumeb totalc Public 4-year $5,749 $5,904 $11,652 49% Private 4-year 2,440 7,614 10,054 24 Public less-than-4-year 335 1,039 1,373 24 Private less-than-4-year 74 204 278 26 Proprietary 1,218 1,139 2,357 52 b Total $9,815 $15,900 $25,715 38% a Includes FDLP and FFELP loans to students at FDLP schools. Table II.2 in appendix II shows the amounts of each type of loan for these schools. b The sum of figures may not equal the total shown because of rounding. c Numbers may not equal the percentage of the figures shown because of rounding. See tables II.3 through II.5 in appendix II for details concerning schools selected to begin participating during year 3. During year 1, FDLP loans accounted for 7 percent of total FDLP and FFELP loans. During year 2, FDLP provided about 30 percent of total loans. As shown in figure 2, loans to students at 4-year public schools represented the largest portion of FDLP volume in both years. Page 5 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 Figure 2: Comparison of FDLP and FFELP Loan Volume During FDLP’s First 2 Years Dollars in Billions $25 20 15 10 5 0 FDLP FFELP FDLP FFELP Year 1 Year 2 Proprietary Private Less-Than-4-Year Public Less-Than-4-Year Private 4-Year Public 4-Year Note: For data supporting figure 2 and additional data such as FDLP volume as a percentage of total volume for each type of school, see tables II.6 and II.7 in appendix II. Many of the schools participating in FDLP during year 2 continued to participate, to some extent, in FFELP. Most of the loans made to students at year 2 schools, however, were FDLP loans, ranging from 67 percent at private less-than-4-year schools to 92 percent at public less-than-4-year schools (see details in table II.8 in app. II). Page 6 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 Aggregate default rates for FDLP and FFELP schools were similar (see fig. 3). Default Rates of FDLP Because default rate data were not yet available for FDLP, we made our and FFELP Schools analysis for schools that are in FDLP based on their FFELP default rates. For schools participating in FDLP as of October 1996, 10.2 percent of students that entered their repayment period for FFELP loans during fiscal year 1993 defaulted by the end of fiscal year 1994 (commonly referred to as the fiscal year 1993 cohort default rate7). For schools continuing to participate only in FFELP, the default rate was 9.9 percent. Although the FFELP rate was somewhat lower, the aggregate default rate for FFELP proprietary schools was higher than for proprietary schools that participated in FDLP. 7 Generally, the statutory cohort default rate is (1) the number of student borrowers with subsidized and unsubsidized loans that entered repayment in a cohort fiscal year and defaulted on those loans by the end of the following fiscal year, divided by (2) the total number of borrowers that entered repayment in the cohort fiscal year. In cases in which fewer than 30 borrowers entered repayment, the rate used is an average for a 3-year period. Page 7 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 Figure 3: FFELP Default Rates for FDLP and FFELP Schools, 1993 Cohort 25 Year 20 15 10 5 0 r r -4- lic ar -4- te ar y ls ea ea tar oo an riva Ye Ye an Pub -Y 4-Y rie ch c4 P op lS te bli iva Pr Al -Th -Th Pu Pr ss ss Le Le FDLP FFELP Note: Data supporting this figure, and similar data for cohort fiscal years 1991 and 1992, are found in table II.9 in appendix II. Although FDLP schools were located in all 50 states, participation in FDLP FDLP Participation by varied widely by state. As shown in figure 4, FDLP schools as of State and Among the October 1996 represented 50 percent or more of fiscal year 1995 loan 100 Largest Schools volume in 13 states but less than a quarter of loan volume in 17 states. See tables II.10 and II.11 in appendix II for data for each state. Page 8 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 Figure 4: FDLP Schools’ Share of Fiscal Year 1995 Loan Volume Of the 100 schools with the largest preliminary fall 1995 enrollments that were eligible to participate in either of the two student loan programs as of October 1996, 50 were FDLP participants and 50 were not. As shown in figure 5, most of these were public 4-year schools, including 40 FDLP participants and 34 FFELP participants. Page 9 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 The 100 schools are listed in table II.12 in appendix II. Figure 5: Half of the 100 Schools With the Largest Enrollments Were FDLP Schools, as of October 1996 Number of Schools 60 50 40 30 20 10 0 FDLP FFELP Public Less-Than-4-Year Private 4-Year Public 4-Year On January 10, 1997, the Department of Education provided us comments Agency Comments on a draft of this report. The Department said that it could not precisely replicate the results of our analysis but, with few exceptions, their results deviated only slightly from ours. It also said that we did not clearly describe our data or offer a sufficient explanation of the reasons for the results of our analysis. We reviewed the specific instances noted by the Department and revised the report to clarify or correct tables, figures, and descriptions as Page 10 GAO/HEHS-97-45 FDLP and FFELP Schools B-275721 appropriate. During our review, we noted various inconsistencies among sets of data obtained from Department staff, and we attempted to resolve them to the extent practicable. We have revised the report to provide more precise descriptions of the information to help explain apparent inconsistencies. The Department also suggested that our report discuss the data at more length and offer explanations for the patterns we observed. The scope of our review did not include assessing reasons for the trends and patterns identified. Rather, our analysis was focused on providing information on schools’ loan activities in the two loan programs. We conducted our review from October through December 1996 in accordance with generally accepted government auditing standards. We are sending copies of this report to the Secretary of Education, appropriate congressional committees, and other interested parties. Please call me at (202) 512-7014 if you or your staff have any questions regarding this report. Major contributors included Joseph J. Eglin, Jr., Assistant Director; Charles M. Novak; Benjamin P. Pfeiffer; and Charles H. Shervey. Sincerely yours, Carlotta C. Joyner Director, Education and Employment Issues Page 11 GAO/HEHS-97-45 FDLP and FFELP Schools Contents Letter 1 Appendix I 14 Scope and Methodology Appendix II 16 Selected Information on FDLP and FFELP Schools Tables Table 1: Types of Schools in FDLP and FFELP, as of 3 October 1996 Table 2: Fiscal Year 1995 Loan Volume for Schools in FDLP and 5 FFELP, as of October 1996 Table II.1: Types of Schools in FDLP and FFELP, as of 16 October 1996 Table II.2: Fiscal Year 1995 Loan Volume at FDLP Schools, as of 16 October 1996 Table II.3: Comparison of Schools the Department Listed as 17 FDLP Candidates for Year 2 and FDLP Candidates for Year 3 With Schools That Participated Each Year Table II.4: Number of Schools Selected as New FDLP Participants 17 for Year 3, and Those Withdrawn, as of October 1996 Table II.5: Fiscal Year 1995 FFELP Loan Volumes for Schools 18 Selected as New FDLP Participants for Year 3, and Those Withdrawn, as of October 1996 Table II.6: Volume of FDLP and FFELP Loans During Year 1 18 Table II.7: Volume of FDLP and FFELP Loans During Year 2 19 Table II.8: Loans in Year 2 to Students Attending FDLP Schools 19 Table II.9: FFELP Default Rates for FDLP and FFELP Schools by 20 Cohort Fiscal Year Table II.10: FDLP Participation by State, as of October 1996 21 Table II.11: Fiscal Year 1995 FDLP and FFELP Loan Volume at 23 FDLP and FFELP Schools, by State, as of October 1996 Table II.12: Loan Program Participation as of October 1996 for 25 the 100 Schools With Largest Enrollments in Fall 1995 Page 12 GAO/HEHS-97-45 FDLP and FFELP Schools Contents Figures Figure 1: Fiscal Year 1995 Loan Volume for Schools in FDLP and 4 FFELP, as of October 1996 Figure 2: Comparison of FDLP and FFELP Loan Volume During 6 FDLP’s First 2 Years Figure 3: FFELP Default Rates for FDLP and FFELP Schools, 8 1993 Cohort Year Figure 4: FDLP Schools’ Share of Fiscal Year 1995 Loan Volume 9 Figure 5: Half of the 100 Schools With the Largest Enrollments 10 Were FDLP Schools, as of October 1996 Abbreviations FDLP Federal Direct Loan Program FFELP Federal Family Education Loan Program Page 13 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix I Scope and Methodology Using data from the Department of Education, our work focused on FDLP and FFELP loan volume during FDLP’s first 2 years. We used the term “federal student loans” to refer to both FDLP and FFELP loan commitments before cancellations.8 We excluded consolidated loans. Some schools identified as FFELP schools as of October 1996 had been FDLP schools earlier and had students who received FDLP loans in fiscal year 1995. For some comparisons, we used schools’ loan volume data for fiscal year 1995 because data were not available by program year. We identified FDLP schools using the Department’s list of schools expected to participate in FDLP as of October 1996. Many of these schools also made FFELP loans. Schools identified as FFELP schools are those that were not in FDLP that were listed as FFELP participants. We did not verify the accuracy of data obtained from the Department. To determine the types of schools participating in FDLP and FFELP, we analyzed Department data concerning schools’ characteristics and placed schools in five groups: public 4-year, private 4-year, public less-than-4-year, private less-than-4-year, and proprietary. We excluded foreign schools.9 No foreign schools were FDLP participants as of October 1996. We included in the public and private 4-year groups institutions that offer baccalaureate degrees or more advanced programs. To determine the aggregate cohort FFELP loan default rate for each of these types of schools, we followed the statutory methodology and calculated aggregate default rates by dividing the total number of defaulting FFELP borrowers by the total number of FFELP borrowers entering repayment. We calculated separate rates for schools listed as participants in FDLP and those that were not. Data needed to compute default rates for FDLP loans were not available. To determine how participation in FDLP varies by state, we calculated for each state the total fiscal year 1995 dollar amount of FDLP and FFELP loans provided to students attending postsecondary institutions in each state 8 Loan commitments are the amounts of loans that lenders or schools commit to make (and guaranty agencies commit to guarantee) to students or their parents. These amounts can be higher than the net principal amounts of loans made because of cancellations. A loan may be cancelled if loan proceeds are never disbursed to the borrower, the loan check remains uncashed 120 days after disbursement, loan proceeds in an escrow account are undisbursed for more than 120 days after being transferred to the account, or the loan is repaid in full within 120 days of disbursement. 9 During fiscal year 1995, students at about 500 foreign schools received approximately $140 million in FFELP loans. Page 14 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix I Scope and Methodology that the Department listed as FDLP participants as of October 1996 and the total amount provided to students at FFELP schools in the state. To determine which of the 100 largest schools participated in FDLP, we compared the Department’s list of schools participating in the program with a list of the 100 largest institutions that participate in federal student loan programs developed from the Department’s National Center for Education Statistics’ preliminary fall 1995 enrollment survey data. In some cases branches of schools use separate Department identification numbers for administering federal loan programs. For the purposes of this analysis, we counted each entity using a separate identification number as a separate school. Page 15 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Table II.1: Types of Schools in FDLP and FFELP, as of October 1996 FDLP schoolsa FFELP schools Percentage Percentage of FDLP of FFELP Type of school Number schools Number schools Public 4-year 245 15% 335 7% Private 4-year 241 15 1,192 25 Public less-than- 4-year 170 10 1,345 29 Private less-than-4-year 52 3 477 10 Proprietary 914 56 1,341 29 Total 1,622 100%b 4,690 100% a Includes schools that also make FFELP loans. b The sum of the numbers shown is not equal to the total because of rounding. Table II.2: Fiscal Year 1995 Loan Volume at FDLP Schools, as of Dollars in millions October 1996 Type of school FDLP loans FFELP loans Total Public 4-year $2,064 $3,685 $5,749 Private 4-year 1,261 1,179 2,440 Public less-than-4-year 217 118 335 Private less-than-4-year 71 3 74 Proprietary 1,070 148 1,218 Totala $4,683 $5,132 $9,815 a The sum of figures may not equal the total shown because of rounding. Page 16 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Table II.3: Comparison of Schools the Department Listed as FDLP Fiscal year 1995 loan Candidates for Year 2 (in Number of schoolsa volume (millions) March 1995) and FDLP Candidates for Schools Year 2 Year 3 Year 2 Year 3 Year 3 (in March 1996) With Schools Listed as new FDLP candidates as That Participated Each Year of March 1,309 539 $7,146 $2,611 Remained on the list of expected participants 1,191 297 6,723 851 Deleted from the list of expected participants 118 242 423 1,760 Not listed as candidates in March but later added to the list of expected participants 42 57 208 34 Total new FDLP schools 1,233 354 $6,931 $885 Note: As of October 1996, 354 schools had agreed to join FDLP in its third year. An additional 242 schools that were listed as new participants for year 3 as of March 1996, however, subsequently declined to participate or otherwise were deleted from the list of expected participants. By comparison, of the 1,309 schools that had agreed to join FDLP in its second year, as of March 1995, 118 had declined to participate (or for some other reason were deleted from the list of expected participants). The other 1,191 schools were still listed as year 2 participants as of March 1996. The 242 schools listed as year 3 candidates as of March 1996 that were deleted from the list had a significantly larger loan volume ($1.76 billion) than the schools dropping out of the program’s second year ($423 million). They also had a much larger loan volume than the schools that agreed to join FDLP in its third year ($885 million). a These included schools that withdrew, deferred participation, closed, or were terminated from the program by the Department. Table II.4: Number of Schools Selected as New FDLP Participants for Year 3, Schools and Those Withdrawn, as of deleted from October 1996 the list of Net Schools expected schools Kind of school selected participantsa selected Public 4-year 65 48 17 Private 4-year 95 74 21 Public less-than-4-year 78 49 29 Private less-than-4-year 26 11 15 Proprietary 385 113 272 All schools 649 295 354 a These included schools that withdrew, deferred participation, closed, or were terminated from the program by the Department. Page 17 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Table II.5: Fiscal Year 1995 FFELP Loan Volumes for Schools Selected as Dollars in millions New FDLP Participants for Year 3, and Schools Those Withdrawn, as of October 1996 deleted from the list of Net Schools expected schools Kind of school selected participantsa selectedb Public 4-year $1,349 $1,037 $311 Private 4-year 1,094 814 279 Public less-than-4-year 126 74 51 Private less-than-4-year 36 23 14 Proprietary 285 82 203 All schoolsc $2,889 $2,031 $859 a These included schools that withdrew, deferred participation, closed, or were terminated from the program by the Department. b The difference between the amounts of loans for schools selected and schools withdrawn may not equal the net shown because of rounding. c The sum of the numbers shown may not equal the total because of rounding. Table II.6: Volume of FDLP and FFELP Loans During Year 1 Dollars in millions FDLP loans as a FFELP percentage Type of school FDLP loans loansa Total of total Public 4-year $1,311 $9,469 $10,780 12% Private 4-year 361 9,210 9,571 4 Public less-than-4-year 21 1,338 1,359 2 b Private less-than-4-year 0 374 374 0c Proprietary 66 2,444 2,510 3 d Total $1,760 $22,834 $24,594 7% Note: Table excludes about $100 million in FFELP loans to students attending schools whose type was not indicated. a Includes FFELP loans to students at schools participating in FDLP. b Less than $500,000. c Less than 0.5 percent. d The sum of the figures shown may not equal the total because of rounding. Page 18 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Table II.7: Volume of FDLP and FFELP Loans During Year 2 Dollars in millions FDLP loans as a FDLP FFELP percentage Type of school loans loansa Totalb of total Public 4-year $5,484 $6,862 $12,346 44% Private 4-year 1,986 8,528 10,514 19 Public less-than-4-year 293 1,213 1,506 19 Private less-than-4-year 18 362 380 5 Proprietary 503 2,147 2,649 19 Totalb $8,284 $19,111c $27,395 30% Note: Table excludes about $200 million in loans to students attending schools whose type was not indicated. a Includes FFELP loans to students at FDLP schools. b The sum of the figures shown may not equal the total because of rounding. c According to Department Budget Service staff, the total, as of January 1997, for FFELP loans during year 2, was $18.8 billion. Table II.8: Loans in Year 2 to Students Attending FDLP Schools Dollars in millions FDLP FFELP FDLP loans as a Type of school loans loansa percentage of total Public 4-year $5,484 $496 92% Private 4-year 1,986 421 83 Public less-than-4-year 293 23 93 Private less-than-4-year 18 24 43 Proprietary 503 415 55 Total $8,284 $1,379 86% a Table includes about $639 million of FFELP loans to students at 441 schools listed as of March 1996 as FDLP participants whose students did not receive FDLP loans during year 2. b Percentages shown may not equal the percentages of dollar amounts because of rounding. Page 19 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Table II.9: FFELP Default Rates for FDLP and FFELP Schools by Cohort Fiscal Year Percentage of borrowers that defaulted 1991 1992 1993 Type of school FDLP FFELP FDLP FFELP FDLP FFELP Public 4-year 6.6% 6.6% 7.2% 6.9% 6.7% 6.7% Private 4-year 7.1 5.2 7.7 5.8 7.6 5.6 Public less-than- 4-year 14.4 14.5 15.1 14.3 14.8 14.5 Private less-than- 4-year 19.9 16.2 18.8 15.4 19.4 13.2 Proprietary 19.5 30.2 18.9 25.5 19.4 23.2 All schools 10.5% 11.8% 10.9% 10.9% 10.2% 9.9% Notes: Default rates for FDLP schools are the percentage of FFELP borrowers who (1) attended schools participating in FDLP as of October 1996, (2) entered repayment in the cohort fiscal year, and (3) defaulted by the end of the following fiscal year. The rates for FFELP schools are for students attending schools that were not FDLP participants as of October 1996, but were in FFELP or FDLP as of the Department’s calculation of cohort default rates published in February 1996. The cohort rates reflect the Department’s addenda to its published rates, but not its subsequent revisions to schools’ default rates. Default rate data were not available for some schools either because they had no former students with loans entering repayment in the cohort years or because the schools were participants in neither FFELP nor FDLP as of the publication of the default rate data. Page 20 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Table II.10: FDLP Participation by State, as of October 1996 FDLP schools as a percentage of State/territory FDLP schoolsa Total schoolsb total schools Alabama 21 84 25% Alaska 2 9 22 Arizona 41 85 48 Arkansas 7 84 8 California 218 586 37 Colorado 30 90 33 Connecticut 25 98 26 Delaware 5 12 42 District of Columbia 6 23 26 Florida 53 227 23 Georgia 46 147 31 Hawaii 1 20 5 Idaho 10 25 40 Illinois 80 265 30 Indiana 28 121 23 Iowa 41 92 45 Kansas 20 84 24 Kentucky 41 178 23 Louisiana 25 132 19 Maine 10 43 23 Maryland 36 90 40 Massachusetts 58 193 30 Michigan 49 182 27 Minnesota 25 117 21 Mississippi 8 60 13 Missouri 31 192 16 Montana 3 34 9 Nebraska 10 55 18 Nevada 6 20 30 New Hampshire 4 37 11 New Jersey 54 140 39 New Mexico 9 39 23 New York 113 467 24 North Carolina 32 147 22 North Dakota 5 31 16 Ohio 69 284 24 (continued) Page 21 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools FDLP schools as a percentage of State/territory FDLP schoolsa Total schoolsb total schools Oklahoma 11 115 10 Oregon 24 77 31 Pacific territories 1 6 17 Pennsylvania 75 416 18 Puerto Rico 35 110 32 Rhode Island 10 28 36 South Carolina 17 79 22 South Dakota 2 30 7 Tennessee 24 148 16 Texas 72 317 23 Utah 5 44 11 Vermont 6 28 21 Virgin Islands 1 1 100 Virginia 48 145 33 Washington 21 93 23 West Virginia 24 74 32 Wisconsin 22 93 24 Wyoming 2 15 13 Total 1,622 6,312 26% a Schools eligible to participate in FDLP; 90 of these were schools that Department records show had no fiscal year 1995 FFELP or FDLP loans. b Schools eligible to participate in FFELP or FDLP; 1,152 of these were FFELP schools that Department records show had no fiscal year 1995 loans. Page 22 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Table II.11: Fiscal Year 1995 FDLP and FFELP Loan Volume at FDLP and Dollars in millions FFELP Schools, by State, as of Amount of Amount of Amount at FDLP October 1996 loans at loans at Total fiscal schools as a FDLP FFELP year 1995 percentage of State/territorya schoolsb schoolsb loansc totald Alabama $220 $110 $330 67% Alaska 2 14 16 10 Arizona 269 326 596 45 Arkansas 17 139 157 11 California 964 1,542 2,506 39 Colorado 256 224 480 53 Connecticut 62 227 289 22 Delaware 23 10 33 71 District of Columbia 212 135 347 61 Florida 247 825 1,072 23 Georgia 344 294 638 54 e Hawaii 0 36 37 1 Idaho 108 25 134 81 Illinois 421 572 993 42 Indiana 199 434 633 32 Iowa 276 176 453 61 Kansas 127 178 305 42 Kentucky 137 172 309 44 Louisiana 104 416 520 20 Maine 34 85 118 28 Maryland 225 121 346 65 Massachusetts 494 463 958 52 Michigan 570 275 845 67 Minnesota 158 356 513 31 Mississippi 14 203 216 6 Missouri 260 379 639 41 Montana 32 80 112 29 Nebraska 59 165 224 26 Nevada 25 26 51 49 New Hampshire 8 153 161 5 New Jersey 293 139 432 68 New Mexico 53 73 127 42 New York 921 1,380 2,301 40 North Carolina 111 370 481 23 North Dakota 4 96 100 4 (continued) Page 23 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Dollars in millions Amount of Amount of Amount at FDLP loans at loans at Total fiscal schools as a FDLP FFELP year 1995 percentage of State/territorya schoolsb schoolsb loansc totald Ohio 524 623 1,147 46 Oklahoma 71 282 353 20 Oregon 178 130 308 58 e e Pacific territories 0 0 0 0 Pennsylvania 174 1,452 1,626 11 Puerto Rico 106 25 131 81 Rhode Island 93 105 198 47 South Carolina 69 249 318 22 South Dakota 8 111 119 7 Tennessee 137 325 462 30 Texas 230 1,158 1,388 17 Utah 16 166 181 9 Vermont 40 67 106 37 Virgin Islands 1 0 1 100 Virginia 428 211 638 67 Washington 220 357 577 38 West Virginia 122 43 166 74 Wisconsin 148 332 480 31 Wyoming 0e 45 45 1 c Total $9,815 $15,900 $25,715 38% a State or territory in which the main campus of each school is located. b Total of FDLP and FFELP loans. c The sum of figures shown may not equal the total because of rounding. d The numbers may not equal the percentage shown because of rounding. e Less than $500,000. Page 24 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Table II.12: Loan Program Participation as of October 1996 for the 100 Schools Preliminary With Largest Enrollments in Fall 1995 fall 1995 FDLP FFELP Rank School enrollmenta schoolb schoolc 1 University of Minnesota-Twin Cities 51,445 X 2 Ohio State University-Main Campus 48,676 X 3 The University of Texas at Austin 47,905 X 4 Miami-Dade Community College 47,060 X 5 Arizona State University-Main Campus 42,040 X 6 Texas A & M University 41,790 X 7 Michigan State University 40,647 X 8 Pennsylvania State University-Main Campus 39,646 X 9 Houston Community College System 39,541 X 10 University of Florida 39,412 X 11 University of Wisconsin-Madison 39,005 X 12 University of Illinois at Urbana 38,420 X 13 Northern Virginia Community College 37,144 X 14 University of Michigan-Ann Arbor 36,687 X 15 Purdue University-Main Campus 36,427 X 16 University of South Florida 36,142 X 17 New York University 35,835 X 18 Indiana University-Bloomington 35,063 X 19 University of Arizona 34,777 X 20 University of California- Los Angeles 34,713 X 21 University of Washington 33,996 X 22 Rutgers University-New Brunswick 33,773 X 23 University of Maryland College Park Campus 32,908 X 24 Wayne State University 32,149 X 25 Brigham Young University 31,300 X 26 University of Houston-University Park 30,766 X 27 Florida State University 30,155 X 28 University of Georgia 30,149 X 29 College of Du Page 29,888 X 30 University of California-Berkeley 29,630 X 31 San Diego State University 29,350 X (continued) Page 25 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Preliminary fall 1995 FDLP FFELP Rank School enrollmenta schoolb schoolc 32 Boston University 29,132 X 33 Temple University 29,028 X 34 University of Cincinnati-Main Campus 28,373 X 35 North Carolina State University at Raleigh 28,250 X 36 Florida International University 28,171 X 37 University of Iowa 28,052 X 38 University of Southern California 27,971 X 39 Pima Community College 27,866 X 40 University of Colorado at Boulder 27,624 X 41 University of Utah 27,137 X 42 Indiana University-Purdue University-Indianapolis 26,939 X 43 San Francisco State University 26,791 X 44 Louisiana State University and A & M College and Hebert Law Center 26,573 X 45 University of Central Florida 26,556 X 46 Portland Community College 26,540 X 47 Western Michigan University 26,537 X 48 California State University-Long Beach 26,403 X 49 University of South Carolina at Columbia 26,346 X 50 Colorado State University 26,340 X 51 University of Pittsburgh-Main Campus 26,083 X 52 City College of San Francisco 26,019 X 53 San Jose State University 25,997 X 54 Tarrant County Junior College 25,953 X 55 Oakland Community College 25,913 X 56 Broward Community College 25,738 X 57 University of Tennessee-Knoxville 25,723 X 58 Austin Community College 25,620 X 59 Virginia Polytechnic Institute and State University 25,492 X 60 University of Massachusetts-Amherst 25,267 X 61 Macomb Community College 25,176 X (continued) Page 26 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Preliminary fall 1995 FDLP FFELP Rank School enrollmenta schoolb schoolc 62 University of North Texas 25,114 X 63 University of Kansas-Main Campus 25,036 X 64 California State University-Northridge 25,015 X 65 University of Illinois at Chicago 24,870 X 66 Harvard University 24,677 X 67 Iowa State University 24,673 X 68 Northeastern University 24,605 X 69 University of New Mexico-Main Campus 24,605 X 70 State University of New York at Buffalo 24,493 X 71 University of North Carolina at Chapel Hill 24,439 X 72 University of Nebraska at Lincoln 24,320 X 73 Georgia State University 24,274 X 74 Texas Tech University 24,185 X 75 George Mason University 24,172 X 76 University of Kentucky 23,794 X 77 University of Akron Main Campus 23,640 X 78 Central Michigan University 23,575 X 79 Valencia Community College 23,569 X 80 Eastern Michigan University 23,142 X 81 University of California-Davis 23,091 X 82 California State University-Sacramento 22,796 X 83 Cuyahoga Community College District 22,785 X 84 California State University-Fullerton 22,604 X 85 De Anza College 22,545 X 86 University of Connecticut 22,471 X 87 Southern Illinois University-Carbondale 22,418 X 88 University of Missouri-Columbia 22,356 X 89 University of Oklahoma-Norman Campus 22,299 X 90 Northern Illinois University 22,218 X 91 Mt. San Antonio College 22,202 X (continued) Page 27 GAO/HEHS-97-45 FDLP and FFELP Schools Appendix II Selected Information on FDLP and FFELP Schools Preliminary fall 1995 FDLP FFELP Rank School enrollmenta schoolb schoolc 92 University of Pennsylvania 22,148 X 93 Auburn University-Main Campus 22,122 X 94 The University of Texas at Arlington 22,121 X 95 University of Toledo 21,991 X 96 Milwaukee Area Technical College 21,903 X 97 University of Wisconsin-Milwaukee 21,891 X 98 El Paso Community College 21,856 X 99 Nassau Community College 21,737 X 100 University of Virginia-Main Campus 21,728 X Note: Not all enrolled students receive student loans. In aggregate during fiscal year 1995, students at the FDLP schools listed above received about $3.1 billion in loans, including $2.07 billion in FDLP loans and $1.06 billion in FFELP loans. The students at FFELP schools listed received about $2.63 billion in FFELP loans. a Excludes students not enrolled for credit. b Schools that the Department determined to be eligible to participate in FDLP. c Schools that Department records show to be eligible to participate in FFELP, but not in FDLP. (104873) Page 28 GAO/HEHS-97-45 FDLP and FFELP Schools Ordering Information The first copy of each GAO report and testimony is free. Additional copies are $2 each. Orders should be sent to the following address, accompanied by a check or money order made out to the Superintendent of Documents, when necessary. VISA and MasterCard credit cards are accepted, also. Orders for 100 or more copies to be mailed to a single address are discounted 25 percent. Orders by mail: U.S. General Accounting Office P.O. Box 6015 Gaithersburg, MD 20884-6015 or visit: Room 1100 700 4th St. NW (corner of 4th and G Sts. NW) U.S. General Accounting Office Washington, DC Orders may also be placed by calling (202) 512-6000 or by using fax number (301) 258-4066, or TDD (301) 413-0006. Each day, GAO issues a list of newly available reports and testimony. To receive facsimile copies of the daily list or any list from the past 30 days, please call (202) 512-6000 using a touchtone phone. A recorded menu will provide information on how to obtain these lists. For information on how to access GAO reports on the INTERNET, send an e-mail message with "info" in the body to: firstname.lastname@example.org or visit GAO’s World Wide Web Home Page at: http://www.gao.gov PRINTED ON RECYCLED PAPER United States Bulk Rate General Accounting Office Postage & Fees Paid Washington, D.C. 20548-0001 GAO Permit No. G100 Official Business Penalty for Private Use $300 Address Correction Requested
Student Loans: Selected Characteristics of Schools in Two Major Federal Loan Programs
Published by the Government Accountability Office on 1997-01-31.
Below is a raw (and likely hideous) rendition of the original report. (PDF)