oversight

Supplemental Student Loans: Who Are the Largest Lenders?

Published by the Government Accountability Office on 1990-02-21.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

      Fact Sheet for Congressional
GAO   Reyuesters




      SUPPLEMENTAL
      STUDENT LOANS
      Who Are the Largest
      Lenders?
              United States
              General Accounting Office
              Washington, D.C. 20648

              Human Resources Division

              B-237438
              February     21,199O
              The Honorable Edward M. Kennedy
              Chairman, Committeeon Labor
                and Human Resources
              United States Senate
              The Honorable Pat Williams
              Chairman, Subcommitteeon Postsecondary
                Education
              Committee on Education and Labor
              Houseof Representatives
              This report respondsto your request for information on lenders partici-
              pating in the SupplementalLoans for Students (SW) program. This pro-
              gram provides market-rate loans to postsecondarystudents in addition
              to, or in lieu of, other financial aid, such as Stafford loans (formerly
              called guaranteed student loans) and Pell grants. Specifically, you
              requestedSLSloan volume and default data for the 10 largest SLSlenders
              from each of the nine guaranty agencies’we reported on previously.2
              You asked us to provide, for each lender, data on the volume of loans
              made to students attending proprietary (trade) schoolsand other post-
              secondaryeducation institutions, as well as information on the extent of
              borrowing by freshmen as comparedwith students in their secondor
              subsequentyears of schooling.In addition, you wanted to know the
              amount of SLSdefaulted loans.
              On December14 and 21,1989, we briefed your offices on the prelimi-
              nary results of our analysis, This fact sheet summarizesthe information
              provided.


Baickground   unions, or savings and loan associations.Before students can receive an
              SLSloan, their schoolsmust first determine their eligibility for a Stafford
              loan or Pell grant or both. Theseprograms have more stringent eligibil-
              ity requirements than the SLSprogram. If students are eligible for aid
              from either or both of these programs, they should first receive that


              lThere are 66 guaranty agenciesthat act as “middlemen” between the Department of Education and
              the lenders. As such, they insure the SLS loans made by the lenders to students. The guaranty agen-
              cies are in turn reinsured by the Department.

              2Supplemental Student Loans: Who Borrows and Who Defaults (GAO/HRD-90-33FS, Oct. 17, 1989).



              Page 1                                   GAO/IIlUMO-72Fs      Supplemental Student Loan Lenders
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                       0227438




                       assistance,which may reduce the amount they can borrow under the SLS
                       program.
                       Under the SLSprogram, graduate and certain undergraduate students-
                       generally those responsiblefor their own financial support-may bor-
                       row up to $4,000 per year, to a maximum of $20,000. Borrowers are
                       eligible for SLSloans regardlessof their income or assets,in comparison
                       with Stafford loans and Pell grants, which are based on a borrower’s
                       financial needsand resources.
                       The OmnibusBudget ReconciliationAct of 1989 (Public Law 101-239)
                       made several changesto the sr.sloan program that generally became
                       effective on January 1, 1990. For example, beginning on January 1,
                       1990, no SLSloans can be made to undergraduate students (except those
                       already enrolled and receiving loans on the date of enactment of the act)
                       attending schoolsthat have default rates-as determined by the Depart-
                       ment of Education-in excessof 30 percent.
                       SLSloans have variable interest rates, adjusted annually to take into
                       account changesin Department of Treasury borrowing rates. For the
                       1989-90award year, the interest rate was 12 percent. Repaymentof
                       these loans must generally begin within 60 days of the last loan dis-
                       bursement for each year a loan is received.
                       The annual volume of new SLSloans was $711 million in fiscal year
                       1987, $2 billion in fiscal year 1988, and $2.1 billion in fiscal year 1989,
                       resulting in a total of $4.8 billion during the 3 years.

                       In discussionswith your offices we agreedto obtain the requestedinfor-
Otijective,Scope,and   mation for fiscal years 1987, 1988, and 1989 for the 10 largest SLSlend-
M&hodology             ers from the nine guaranty agenciesthat we previously reported on in
                       October 1989. Eight of the nine agenciesprovided actual data for each
                       fiscal year. The California Student Aid Commission,however, provided
                       actual data through June 30, 1989, and estimated data for the remain-
                       der of fiscal year 1989. We did not verify the accuracy of the data sub-
                       mitted by the guaranty agencies.
                       Defaults are listed by the lender originating the loan even though that
                       lender may not have held the loan at the time of default. The lender may             1
                       have sold the loan to another financial institution prior to default. In
                       addition, the lenders holding the loans may have exercisedproper care
                       in servicing them prior to default. As such, loans that went into default


                       Page 2                         GAO/HRD90-72FB Supplemental Student Loan knders
                                            B-237438




                                            do not indicate that lenders failed to adhere to any statutory or regula-
                                            tory provision.

                                            Sevenagenciesprovided data on default claims they paid to the lenders
                                            during each of the 3 fiscal years listed by the year the claim was paid,
                                            rather than the year the loan was made. The Colorado and Nebraska
                                            agencies,however, provided default data basedon the year that the
                                            loans were guaranteed. For example,the 1988 default data for these two
                                            agenciesrepresent the loans they guaranteed in 1988, which have subse-
                                            quently defaulted.
                                            Our review of the data collected showed that six lenders (Bank of Hor-
                                            ton, Citibank, First America SavingsBank, First Independent Trust
                                            Company,M id-AmericaHigher Education Loan Program, and Union
                                            Bank and Trust Company)with the samecity and state addresshad
                                            their SL$loans guaranteed by more than one agency.For example,SLS
                                            loans made by the First Independent Trust Companywere guaranteed
                                            by the California, Texas, and Higher Education AssistanceFoundation
                                            agencies.We combinedthe loan volumes and defauli statistics of these
                                            lenders for summary purposes(seetables 1 and 2) in determ ining which
                                            lenders had the largest loan volumes and defaults.


                                            The nine guaranty agencies’10 largest lenders made a cumulative total
Lo&nVolumes                                 of about $2.6 billion-of the $4.8 billion in SLSloans made by all lend-
                                            ers-during the 3-year period. The lender with the largest loan volume
                                            ($305 m illion) was the First Independent Trust Company,and the Dau-
                                            phin Deposit Bank and Trust Company had the smallest volume
                                            ($429,368).
                                            Five lenders accountedfor about 40 percent ($1 billion) of the SLSloans
                                            made by the 10 largest lenders for the nine agencies.(Seetable 1Q)
Table 1: Five Largest Originating Lenders
of SLS Loans (Fiscal Years 1987-89)         Lender                                                                     Loan volume
                                                                                                                   ____-I__.
                                            First Independent Trust Company                                            $304,678,302
                                            ___-. of Horton
                                            Bank                                                           __I_-
                                            Norwest Bank of South Dakota                                                167,079,173
                                            Citibank
                                            ___-..---.--                                          ______________        163,928,225
                                            Bank of America
                                            _____---.--                                    -.--   .~.___                126,345,161
                                            Total                                                                      $999,971,925




                                            Page 3                            GAO/HRDM-72FS Supplemental Student Loan Lenders
                                           B-237433




                                           Appendixes I and II present the amount of loans made by the 10 largest
                                           lenders for the nine guaranty agenciesto students attending proprietary
                                           and nonproprietary schoolsand to freshmen and nonfreshmenstudents,
                                           respectively.


Default Volumes                            $260 m illion in loan defaults during fiscal years 1987 through 1989. The
                                           five lenders with the largest amount of defaulted loans had an aggregate
                                           of almost $160 m illion in defaults, about 60 percent of the total, over the
                                           3-year period. Theselenders are listed in table 2.
Tab@ 2: Five Largest Originating Landers
With/the Largest Amount of Defaulted                                                                                     Default
SLS Loans (Fiscal Years 1987-89)           Lenders                                                                       volume
                                           Bank of Horton                                                            $66,829,820
    I
                                           First Independent Trust Company   ..-___                                   27,924,764
                                           The Chase Manhattan Bank                                                   21,476,766
                                           Trans World Insurance Company                                              18,023,800
                                           Citibank                                                                   15,547,599
                                           Total                                                                   $149,802,746


                                           Appendixes III and IV show the amount of defaulted SISloans for the
                                           nine guaranty agencies’largest 10 lenders. The information is presented
                                           for students who attended proprietary and nonproprietary schoolsand
                                           those who were freshmen and nonfreshmenstudents, respectively.


                                           As agreed with your offices, we did not obtain written commentson this
                                           report from the Department of Education or other interested parties. We
                                           are sending copiesof this report to other congressionalcommittees,the
                                           Department of Education, and other interested parties. Should you wish
                                           to discussits contents, pleasecall me on (202) 276-1793.Major contribu-
                                           tors to this report are listed in appendix V.


                                           3u                      %mp
                                           Franklin Frazier
                                           Director, Education
                                             and Employment Issues



                                           Page 4                              GAO/HRD-!W72F’S Supplemental Student LOan Lenders
i




    Page B   GAO/HRD-90-72PS Supplemental Student Loan Lenders
                                                                              ,

C(.mtents


Letter                                                                       1

AapendixI
NineGuaranty
Ag ncies' lOLargest
0 J ginatorsof SLS
Lo&ns:LoansMadeto
StudentsAttending
Proprietary and
Nonproprietary
S&ools(FiscalYears
1987-1989)
Aipendix II                                                                 16
NineGuaranty
Agencies'10Largest
Originators0fSLS
Lobs:LoansMadeto
Freshmenand
Nonfreshmenstudents
(Fiscal Years
1987-1989)




                      Page 6   GAO/HRWO-72F’S Supplemental Student Loan Lenders
                            Contents




Appendix III
Nine Guaranty
Agencies’10 Largest
Originatorsof SLS
Loans:Defaults From
StubentsAttending
Proprietary and
Nonproprietary
Schools(Fiscal Years
19874989)
Appendix IV                                                                                          26
Nine Guaranty
Agencies’10 Largest
Originatorsof SLS
Loans:Defaults From
Freshmenand
NonfreshmenStudents
FisicalYears
1987-1989)
Appendix V                                                                                           31
Major Contributors to
This Report
RelatedGAO Products                                                                                  32
                        I
Tables                      Table 1: Five Largest Originating Lenders of SLSLoans                      3
                                (Fiscal Years 1987-89)
                            Table 2: Five Largest Originating Lenders W ith the                        4
                                Largest Amount of Defaulted SLSLoans (Fiscal Years
                                1987-89)
                            Table I. 1: California Student Aid Commission                            10


                            Page 7                     GAO/IiRD9O-72Fs Supplemental Student Loan Lenders
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Content.8




Table 1.2:Colorado Student Loan Program                                 10
Table 1.3:Higher Education Assistance Foundation                        11
Table 1.4:MassachusettsHigher Education Assistance                      11
    Corporation
Table 1.6:Nebraska Student Loan Program                                 12
Table 1.6:Ohio Student Loan Commission                                  12
Table 1.7:Pennsylvania Higher Education Assistance                      13
    Agency
Table 1.8: Texas Guaranteed Student Loan Corporation                    14
Table 1.9:United Student Aid Funds                                      16
Table II. 1: California Student Aid Commission                          16
Table 11.2:Colorado Student Loan Program                                16
Table 11.3:Higher Education Assistance Foundation                       17
Table 11.4:MassachusettsHigher Education Assistance                     17
    Corporation
Table 11.6:Nebraska Student Loan Program                                18
Table 11.6:Ohio Student Loan Commission                                 18
Table 11.7:Pennsylvania Higher Education Assistance                     19
    Agency
Table 11.8:Texas Guaranteed Student Loan Corporation                    19
Table 11.9:United Student Aid Funds                                     20
Table III. 1: California Student Aid Commission                         21
Table 111.2:Colorado Student Loan Program                               21
Table 111.3:Higher Education Assistance Foundation                      22
Table 111.4:MassachusettsHigher Education Assistance                    22
    Corporation
Table 111.6:Nebraska Student Loan Program                               23
Table III.6 Ohio Student Loan Commission                                23
Table 111.7:Pennsylvania Higher Education Assistance                    24
    Agency
Table 111.8:Texas Guaranteed Student Loan Corporation                   24
Table 111.9:United Student Aid Funds                                    26
Table IV. 1: California Student Aid Commission                          26
Table IV.2: Colorado Student Loan Program                               26
Table IV.3: Higher Education Assistance Foundation                      27
Table IV.4: MassachusettsHigher Education Assistance                    27
    Corporation
Table IV&: Nebraska Student Loan Program                                28
Table IV.6: Ohio Student Loan Commission                                28
Table IV.7: Pennsylvania Higher Education Assistance                    29
    Agency
Table IV.3 Texas Guaranteed Student Loan Corporation                    29
Table IV.9: United Student Aid Funds                                    30


Page 8                      GAO/HRD+W72F8 Supplemental Student Loan Lenders
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    A b b r e v i a tio n s

    SLS             S u p p l e m e n tal
                                       L o a n sfor S tu d e n ts


    P a g e9                                  G A O / H R D 9 0 - 7 2 F ’SS u p p l e m e n t a l S tudent L o a n L e n d e r s
Aphndix     I

Nhe Guaranty Agencies’10 Largest Originatms
of SLS bans: Loans Made to Students
Amnding Proprietary and Nonproprietary
Sqhools(F’iscalYears 19874989)
Tab@ 1.1: California Student Aid
Com~irslon                                                                           Kind of school
                                   Lender                                     Proprietary    Nonproprietary            Totals
                                   Bank of America
                                   Pasadena, CA                               $82,458,324         $43,886,837    $126,345,161
                                   %t Independent Trust Company
                                   Carmichael, CA                              73,258,042          24,691,752      97,949,794
                                   Citibank
                                   Pittsford, NY                               43,279,722          40,216,091      83,495,813
                                   Glendale Federal Savings
                                   Glendale, CA                                51,949,202           161973,337     68,922,539
                                   Great Western Bank
                                   Northridge, CA                              11,379,941          50,486,095      61,866,036
                                   Marine Midland Delaware
                                   Wilmington, DE                              13,494,820           12,075,302     25,570,122
                                   Educaid
                                   Sacramento, CA                              11,409,496            9,401,477     20,810,973
                                   Imperial Savings & Loan
    /                              San Diego, CA                                8,853,194            2,466,137     11,319,331
                                   First Interstate Bank
                                   Pomona, CA                                   5,030,978            3,221,180      8,252,158
                                   Ventura County National Bank
                                   Camarillo, CA                                53057,456            1,834,161      6,891,617


Tablb 1.2: Colorado Student Loan
Prodram                                                                              Kind of school
                                   Lender                                     Prowietarv     Nonproorietaw             Totals
                                   First America Savings Bank
                                   Longmont, CO                               $20,807,X3           $3,528,847     $24,336,400
                                   Denver National Bank
                                   Denver, CO                                  10,400,392            2,903,164     13,303,556
                                   Chemical Bank
                                   Boulder, CO                                  8,128,011            4,433,723     12,561,734
                                   First interstate Bank of Denver
                                   Denver, CO                                   3,792,375            2,142,055      5,934,430
                                   United Bank of Denver
                                   Denver. CO                                     528,616            4,666,559      5,195,175
                                   First National Bank of Southeast Denver
                                   Denver, CO                                   2,595,770            2,336,781      4,932,551
                                   Union Bank & Trust Company
                                   Denver, CO                                   3,537,601               21,600      3,559,201
                                   United Bank of Colorado Springs
                                   Colorado Springs, CO                         3,153,901              196,060      33349,961
                                   First National Bank of Boulder
                                   Boulder, CO                                  1,419,315            1,620,548      3,039,863
                                   Colorado National Bank of Denver
                                   Denver, CO                                     596,408            2,400,509      2,996,917




                                   Page 10                               GAO/HIUMW72FS      Supplemental Student Loan Lenders
                                        Appendix I
                                        Nine Guaranty Agencies’ 10 Largest
                                        Orlf#naton~ of SIB Loans: Laus Made to
                                        Students Attending Proprietary and
                                        Nonproprietary Schoola
                                        (Fiscal Yeam 1987-1989)




Table .3: Higher Education Assistance
Foun 4 ation                                                                             Kind of School
      I                                 Lender                                    Proprietary    Nonproprietary          Totals
                                        First Independent Trust Company
                                        Carmichael, CA                           $193,702,033        $5,692,049    $199,394,082
                                        Norwest Bank of South Dakota
                                        Sioux Falls, SD                             7,208,394       159,870,779     167,079,173
                                                                                                                          -.-
                                        Bank of Horton
                                        Horton, KS                                135,542,576          3,343,765 ~.__138,886,341
                                        Citibank
                                        Rochester, NY                              98,389,942        27,377,846     125,767,788
                                        Trans World Insurance Company
                                        Overland Park, KS                          65,508,049        26,072,293      91,580,342
                                        Bank IV of Wichita
                                        Wichita, KS                                49,153,943        25,112,807      74,266,750
                                        Boatmen’s First National Bank
                                        Kansas City, MO                            56,924,535         10,156,058     67,080,593
                                                                                                                          _-..-
                                        Pennbank Student Loan Center
                                        Meadville, PA                              57,365,815          1,462,024     58,827,839
                                        The Chase Manhattan Bank
                                        New Hyde Park, NY                          49,048,044          4,235,790     53,283,834
                                        First America Savings Bank
                                        Longmont, CO                               43,953,506          2,452,843     46,406,349


Tablei 1.4: Massachusetts Higher
Education Assistance COrpOratiOn                                                         Kind of school
                                        Lender                                    Proprietary    Nonproprietary      -___-Totals
                                        Bank of New England-Worcester
                                        Worcester, MA                             $25,237,259         $3,884,533    529,121,792
                                        Bay Bank-Norfolk
                                        Dedham, MA                                    141,933         12,998,465      13,140,398
                                                                                                                          -__
                                        Pennsylvania Higher Education
                                        Assistance Agency-Law Unit
                                        Camp Hill, PA                                       0         12,539,480      12,539,480
                                        Harvard University
                                        Cambridge, MA                                       0          9,649,749       9,649,749
                                        Key Bankf Maine
                                        Augusta, ME                                     4,000          7,076,313       7,080,313
                                                                                                                        ___-.
                                        First National Bank of Boston
                                        Boston, MA                                    326,342          4,596,955       4,923,297
                                        Bay Bank-Middlesex
                                        Dedham, MA                                    113,284          2,443,113       2,556,397
                                              -.-       ____
                                        Shawmut Bank
                                        Cambridge, MA                                 195,503          2,142,250       21337,753
                                                    -.-.
                                        Bay Bank-Harvard Trust
                                        Dedham, MA                                     33,405          2,208,906       2,242,311
                    v
                                        Merchants National Bank
                                        Leominster, MA                                466.041          1,598,OOO       2,064,041




                                        Page 11                              GAO/JIRD90-72FS Supplemental Student Loan Lenders
                                                                                                                            I




                                                                                                                                         I



                                          Appendix I
                                          Nlue Guaranty Agencies’ 10 Largest
                                          Orlginato~ of SIB bans! Loans Made to
                                          Students Attending Proprietary and
                                          Nonproprietary &hook
                                          (Fiscal Years 1987-1989)




Tab14 1.5: Nebraska Student Loan
Progqam                                                                                    Kind of school
                                          Lender                                    Proprietary    Nonproprietary               Totals
                                          Bank of Horton
                                          Horton, KS                                $52,894,671         $4,052,524      556,947,195
                                          Nebraska Higher Education Loan
                                          Program
                                          Lincoln, NE                                23,904,449         14,310,243       38,214,692
                                                                                                                                 -
                                          Union Bank & Trust Company
                                          Lincoln, NE                                14,943,772          4,953,539       19,897,311
                                          Mid-America Higher Education Loan
                                          Program
                                          Longmont, CO                                9,678,118          2,430,784       12,108,902
                                                                                                                            --
                                          Packers Bank & Trust
                                          Omaha, NE                                   2,608,957          1,613,383        4,222,340
                                          Farmers & Merchants Bank
                                          Colby, KS                                   2,688,028               7,500       2,695,528
                                          Mid-Continent Federal Savings
                                          El Dorado, KS                               2,135,369             29,300        2,164,669
                                          Boatmen’s First National Bank
                                          Lawrence, KS                                  672,872            719,033        1,391,905
                                          Columbia Savings Association
                                          Lincoln, NE
                                          _--                                           967,298            302,033        1,269,331
                                          Union Bank & Trust Company
                                          Denver, CO                                  1,076,565                     0     1,076,565
      I
-v-
Tab14 1.6: Ohio Student Loan Commission
                                                                                          Kind of school
                                          Lender                                   Proprietary    Nonproprietary                Totals
                                          Bank One     of Columbus
                                          Columbus,     OH                          $6,458,154         57,580,481       $14,038,635
                                          Bank One     of Cleveland
                                          Cleveland,    OH                           10,430,275          1,351,433       11,781,708
                                          Chemical Bank
                                          Columbus, OH                                8,540,970            138,590        8,679,560
                                          Ameritrust
                                          Harrisburg, PA                              4,719,420          3,409,769        8,129,189
                                          Bank One of Akron
                                          Akron, OH                                    855,496           2,911,480        3,766,976
                                          Bank One of Dayton
                                          Dayton, OH                                  1,378,392          1,666,477        3,044,869
                                          State Home Savings
                                          Bowling Green, OH                              38,311          2,923,829        2,962,140
                                          Fifth Third Bank
                                          Cincinnati, OH                              1,820,019          1 ,oi 1,933      2,831,952
                                          Bank One of Youngstown
                                          Younastown. OH                               383.767           1.031.690        1,415.457
                                          Huntington Bank
                                          Lawrence, KS                                                    805,191         1,406,160




                                          Page 12                             GAO/HRD90-72FS Supplemental Student Loan Lenders
                                            Appendix I
                                            Nine Guaranty Agencies’ 10 Largest
                                            OrIgInatms of SIB Loans; Loans Made to
                                            Students Attending Proprietary and
                                            Nonproprietary Schools
                                            (Fiscd Years 1987-1989)




Tablet 1.7: Pennsylvania Higher Education
Assiqtance Agency                                                                            Kind of school
     I                                      Lender                                    Proprietary    Nonproprietary         Totals-
                                            Philadelphia Savings Fund Society
     ,                                      Philadelphia, PA                          $37,858,670        %X321,581     $41,180,251
     I                                      Mellon Bank
                                            New Town, PA                                        0        32,362,839     32,362,839
                                            PNC Education Loan Center
                                            Pittsburgh, PA                                707,612         4,422,231      5,129,843
                                            Pennsylvania Higher Education
                                            Assistance Agency Higher Education
                                            Loan Program
                                            Harrisburg, PA                                123,153         3,335,656      3,458,809
                                                                                                                               --
                                            ?%nmonwealth National Bank
                                            Pittsburgh, PA                                405,674          1,654,009     2,059,683-
                                            Meridian Bank
                                            Readina. PA                                   467,489          1,129,036     1,596,525
                                            Fidelity Bank
                                            Upper Darby, PA                               305,716          1,061,468     1,367,184
                                            Podiatry School Program
                                            Harrisbura, PA                                      0           579,442        579,442
                                            Philadelphia National Bank
                                            Philadelphia, PA                              109,074           383,521        492,595-
                                            Dauphin Deposit Bank and Trust
                                            Company
                                            Harrisburg, PA                                176,836           252,532        429,368




                                            Page 13                              GAO/HRD-BO-72PSSupplemental Student Loan Lenders
                                       Appendix I
                                       Nine Guaranty Agencies’ 10 Largest
                                       Originators of SIB Loamx Loans Made to
                                       Students Attending Proprietary and
                                       Nonproprietary Schools
                                       (Flseal Years 1987-1989)




Tabl 9 1.8: Texas Guaranteed Student
LoaniCorporation                                                                            Kind of school
                                       Lender                                        Proprietary    Nonproprietary         Totals
                                       University Federal Savings Association
                                       Austin, TX                                    $52,963,132       $13,824,278    $66,787,410
                                       Windsor Savings Association
                                       Austin, TX                                     33,075,925           774,967     33,850,892
                                       Southside State Bank
    I                                  Tyler, TX                                      20,249,119         2,874,102     23,123,221
                                       Bank One of Texas
                                       Fort Worth, TX                                   1,356,019       12,688,832     14,044,851
                                       --.
                                       Bankers Credit Corporation
    /                                  Waco, TX                                        10,703,132         1,504,986    12,208,118
                                       Bank of Horton
                                       Horton, KS                                      10,596,711           20,796     10,617,507
                                       Village Savings Bank
                                       Houston, TX                                      9,736,763          307,353     10,044,116
                                       PO;;   Higher Education Coordinating
                                       Austin, TX                                               0        9,287,633      9,287,633
                                       -..
                                       El Paso Savings Association
                                       Austin, TX                                       7,365,202           96,089      7,461,291
                                       First Independent Trust Company
                                       Carmichael, CA                                   71244,335           90,091      7,334,426




                                       Page 14                                  GAO/HRD-BO-72FS Supplemental Student Loan Lenders
       .


                                      Appendix 1
                                      Nine Guaranty Agencies’ 10 Largest
                                      Originators of SUi ILUUW Loam Made to
                                      Studenta Attending Proprietary and
                                      Nonproprletary Schools
                                      (Fiscal Years 19874989)




Table 1.9: United Student Aid Funds
                                                                                         Kind of school
                                      Lender                                      Proprietary    Nonproprietary         Totals
                                      Indiana National Bank
                                      Indianapolis, IN                            $49,074,876       $40,262,318    $89,337,194
                                      Chase Education Finance Center
                                      Tampa, FL                                     5701,493         41,240,148     46,941,641
                                      Citibank Student Loan Center
                                      Rochester, NY                                11,405,337        26,755,lOO     38,160,437
                                      Bank of Horton
                                      Horton, KS                                   29,877,383          1,612,638    31,490,021
                                      Bank One-Merrillville
                                      Indianapolis, IN                                897,678        22,055,136     22,952,814
                                      Mid-America Higher Education Loan
                                      Program
                                      Longmont, CO                                 11,697,512          6,497,207    18,194,719
                                      Signet Bank of Maryland
                                      Baltimore, MD                                 6,512,938          9,920,267    16,433,205
                                      MeritorPhiladelphia     Savings Fund
                                      Society-Education
                                      Philadelphia, PA                             10,322,329          5,820,583    16,142,912
                                      Merchants National Bank & Trust Co.
                                      Indianapolis, IN                              8,049,987          6,125,867    14,175,854
                                      Florida Federal Savings & Loan
                                      St. Petersburg, FL                            2,945,406         10,494,294    13,439,700
   i




                   Y




                                      Page 15                                GAO/HRD4@72l?S Supplemental Student Loan Lenders
Appendix     II

Nine Guaranty Agencies’10 Largest Originabrs
of SLS Loans: Loans Made to Freshmen and
Nonfreshmen Students(Fiscal Yeam
1@37-1989)
Tabie’ii.1: California Student Aid
Corn ission                                                                              Kind of student
                                     Lender                                           Freshmen Nonfreshmen             Totals
    t                                Bank of America
                                     Pasadena, CA                                    $92,249,285   $34,095,876   $126,345,161
                                     First Independent Trust Company
                                     Carmichael, CA                                   74,481,047    238468,747     97,949,794
                                     Citibank
                                     Pittsford, NY                                    51,625,213    31,870,600     83,495,813
                                     Glendale Federal Savings
                                     Glendale, CA                                     54,697,229    14,225,310     68,922,539
                                     Great Western Bank
                                     Northridge, CA                                   16,297,509    45-568527      61,866,036
                                     Marine Midland Delaware
                                     Wilmington, DE                                   15,429,036    10,141,086     25,570,122
                                     Educaid
                                     Sacramento, CA                                   13,897,573     6,913,400     20,810,973
                                     Imperial Savings & Loan
                                     San Diego, CA                                    10,561,376       757,955     11,319,331
                                     First Interstate Bank
                                     Pomona, CA                                        5,407,733     2,844,425      8,252,158
                                     Ventura County National Bank
                                     Camarillo, CA                                     6,343,574       548,043      6,891,617


Tabid 11.2:Colorado Student Loan
Progfam                                                                                  Kind of student
     I                               Lender                                           Freshmen Nonfreshmen             Totals
                                     First America Savings Bank
                                     Longmont, CO                                    $19,198,868    $5,137,532    $24,336,400
                                     Denver National Bank
                                     Denver, CO                                        7,742,181     5,561,375     13,303,556
                                     Chemical Bank
                                     Boulder. CO                                       7,308,539     5,253,195     12,561,734
                                     First Interstate Bank of Denver
                                     Denver, CO                                        4,108,794     1,825,636      5,934,430
                                     United Bank of Denver
                                     Denver, CO                                          862,104     4,333,071      5,195,175
                                     First National Bank of Southeast Denver
                                     Denver, CO                                        2,834,361     2,098,190      4,932,551
                                     Union Bank & Trust Company
                                     Denver. CO                                        2,317,567     1,241,634      3,559,201
                                     United Bank of Colorado Springs
                                     Colorado Springs, CO                              3,063,602       286,359      3,349,961
                                     First National Bank of Boulder
                                     Boulder, CO                                       1,348,110     1,691,753      3,039,863
                                     Colorado National Bank of Denver
                      Y
                                     Denver. CO                                        1,044,539     1,952,378      2,996,917




                                     Page 16                               GAO/lCRJMO-72Fs Supplemental Student Loan Lenders
         .


                                         &w&n
                                         Nine Quarmw &endem’ 10 Largert
                                         OrigheroofSIBLoruur:Loa3lsMadeto
                                         lkdmen    and No&e&men Students
                                         (Fiecal Yeam 1987-19S9)




Table 1.3: Higher Education Asristanco
Founc(atlon                                                                                 Kind of student
      ,                                  Lender                                          Freshmen Nonfreshmen             Totals
                                         First Independent Trust Company
                                         Carmichael, CA                                $172,858,659   $26,535,423   $199,394,082
                                         Norwest Bank of South Dakota
                                         Sioux Falls, SD                                 10,944,433   156,134,740    167,079,173
                                         Bank of Horton
                                         Horton, KS                                     131,275,445     7,610,896    138,886,341
                                         Citibank
     /                                   Rochester, NY                                   97,926,383    27,841,405    125767,788
                                         Trans World Insurance Company
                                         Overland Park, KS                               64,124,128    27,456,214     91,580,342
                                         Bank IV of Wichita
                                         Wichita, KS                                     54,280,785    19,985,965     74,266,750
                                         Boatmen’s First National Bank
                                         Kansas City, MO                                 54,368,599    12,711,994     67‘080,593
                                         Pennbank Student Loan Center
                                         Meadville, PA                                   53,720,102     5107,737      58,827,839
                                         The Chase Manhattan Bank
                                         New Hyde Park, NY                               42,493,844    10,789,990     53,283,834
                                         First America Savings Bank
                                         Longmont, CO                                    37,857,466     8,548,883     46,406,349


Tablq 11.4:Massachurettr Higher
Education Asslatance Corporation                                                            Kind of student
                                         Lender                                          Freshmen Nonfreshmen             Totals
                                         Bank of New England-Worcester
                                         Worcester, MA                                  $25,714,269    $3,407,523    $29,121,792
                                         Bay Bank-Norfolk
                                         Dedham, MA                                         548,755    12,591,643     13,140,398
                                         Pennsylvania Higher Education Assistance
                                         Agency-Law Unit
                                         Camp Hill, PA                                            0    12,539,480     12,539,480
                                         Harvard University
                                         Cambridge, MA                                        4,000     9,645,749      9,649,749
                                         Key Bank of Maine
                                         Augusta, ME                                         12,000     7,068,313      7,080,313
                                         First National Bank of Boston
                                         Boston, MA                                       1,261,009     3662,288       4,923,297
                                         Bay Bank-Middlesex
                                         Dedham, MA                                         328,713     2,227,684      2,556,397
                                         Shawmut Bank
                                         Cambridge, MA                                      526,736     1,811,017      2,337,753
                                         Bay Bank-Harvard Trust
                                         Dedham, MA                                          98,445     2,143,866      2,242,311
                     *                   Merchants National Bank
                                         Leominster. MA                                     492,141     1,571,900      2,064,041




                                         Page 17                              GAO/HRD-90-72FS Supplemental Student Loan Lenders
                                   Appendix II
                                   Nine Guaranty Agencies’ 10 Largest
                                   Origlnatoro of SLS Loans: Loax Made to
                                   Frehnen and Nonfreshmen Students
                                   (Fiscal Years 19874989)




Tabig 11.5:Nsbraska Student Loan
Progpm                                                                                Kind of student
                                   Lender                                          Freshmen Nonfreshmen            Totals
                                   Bank of Horton
                                   Horton, KS                                     $53,618,865    $3,328,330   $56,947,195
                                   Nebraska Higher Education Loan Program
                                   Lincoln, NE                                     32,109,479     6,105,213    38,214,692
     I                             Union Bank & Trust Company
     I                             Lincoln, NE                                     17,101,136     2,796,175    19,897,311
                                   Mid.America Higher Education Loan Program
                                   Longmont, CO                                    10,950,834     1,158,068    12,108,902
                                   Packers Bank & Trust
                                   Omaha, NE                                        33926,437       295,903     4,222,340
                                   Farmers & Merchants Bank
                                   Colbv. KS                                        2.683.528        12.000     2.695328
                                   Mid-Continent Federal Savings
                                   El Dorado, KS                                    2,131,202        33,467     2,164,669
                                   Boatmen’s First National Bank
                                   Lawrence, KS                                     1,219,577       172,328     1,391,905
                                   Columbia Savings Association
                                   Lincoln, NE                                      1,153,118       116,213     1,269,331
                                   Union Bank & Trust Company
                                   Denver, CO                                         588,900       487,665     1,076,565

-’
Tablg 11.6:Ohio Student Loan
Comimission                                                                           Kind of student
                                   Lender                                          Freshmen Nonfreshmen            Totals
                                   Bank One of Columbus
                                   Columbus, OH                                    $7,634,768    $6,403,867   $14,038,635
                                   Bank One of Cleveland
                                   Cleveland, OH                                   10,074,116     1,707,592    11,781,708
                                   Chemical Bank
                                   Columbus, OH
                                   -..-                                             8,249,357       430,203     8,679,560
                                   Ameritrust
                                   Harrisburg, PA
                                   ----__                                           5,609,490     2,519,699     8,129,189
                                   Bank One of Akron
                                   Akron, OH                                          985,834     2,781,142     3,766,976
                                   Bank One of Dayton
                                   Dayton, OH
                                   -_---                                            1,716,247     1,328,622     3,044,869
                                   State Home Savings
                                   Bowling Green, OH
                                   -.-_                                               528,200     2,433,940     2,962,140
                                   Fifth Third Bank
                                   Cincinnati, OH                                   2,093,870       738,082     2,831,952
                                   Bank One of Youngstown
                                   Younastown, OH                                     588,637       826,820     1,415,457
                                   Huntington Bank
                                   Lawrence. KS                                       744.993       661.167     1.406.160




                                   Page 18                              GAO/HRD-BO-72FS Supplemental Student Loan Lenders
                                      Appendix II
                                      Nine Guaranty Agencies’ 10 Largest
                                      Orlghtore of SW Loans: Loans Made to
                                      Freshmen and Nonfreshmen Students
                                      (Fiscal Years 1987~1989)




Tabls( 11.7:Pennsylvania Higher
Educbtion Assistance Agency                                                                  Kind of student
                                      Lender                                              Freshmen Nonfreshmen            ___-Totals
     I                                Philadelphia Savings Fund Society
                                      Philadelphia, PA                                   537,140,048    54,040,203      541,180,251
                                      Mellon Bank
                                      New Town, PA                                                 0    32,362,839        32,362,839
                                      PNC Education Loan Center
                                      Pittsburgh, PA                                         941,256     4,188,587         5,129,843
                                                                                                                              ---
                                      Pennsylvania Hi her Education Assistance
                                      Agency Higher I! ducation Loan Program
                                      Harrisbura, PA                                         187,726     3,271,083         3,4.58,809
                                      Commonwealth National Bank
                                      Pittsburah. PA                                         438,658     1,621,025         2,059,683
                                      Meridian Bank
                                      Reading, PA                                            528,126     1,068,399         1,596,525
                                                                                                                           ___-
                                      Fidelity Bank
                                      Upper Darbv. PA                                        338,676     1,028,508         1,367,184
                                      Podiatry School Program
                                      Harrisburg, PA                                               0       579,442           579,442.
                                      Philadelphia National Bank
                                      Philadelphia, PA                                       121,364       371,231           492,595
                                      Dauphin Deposit Bank and Trust Company
                                      Harrisbura. PA                                         147,633       281,735           429,368


Table 11.8:Texas Guaranteed Student
Load Corporation                                                                             Kind of student
                                      Lender                                              Freshmen Nonfreshmen                 Totals
                                      University Federal Savings Association
                                      Austin,
                                      _____ TX                                           $51,420,480   $15,366,930      $66,787,410
                                      Windsor Savings Association
                                      Austin, TX                                          32,186,662     1,664,230        33,850,892
                                      Southside State Bank
                                      Tyler, TX                                           20,540,262     2582,959
                                                    --                                                                  -.- 23,123,221
                                      Bank One of Texas
                                      Fort Worth, TX                                       3,933,291    10,111,560        14,044,851
                                      ____.
                                      Bankers Credit Corporation
                                      Waco. TX                                            10,696,204     1,511,914        12,208,118
                                      Bank of Horton
                                      Horton, KS                                          10,095,819       521,688        10,617,507
                                      _---
                                      Village Savings Bank
                                      Houston, TX                                          9,290,736       753,380        10,044,116
                                      Texas Higher Education Coordinating Board
                                      Austin,
                                      _____.- TX                                             646,501     8,641,132         9,287,633-
                                      El Paso Savings Association
                                      Austin, TX                                           7,124,476       336,815 -.      7,461,291
                                      _-----
                                      First Independent Trust Company
                                      Carmichael. CA                                       6,431,628       902,798         7,334,426




                                      Page 19                                  GAO/HRD-SO-72FS Supplemental Student Loan Lenders
                                      Appendix II
                                      Nine Guaranty Agencies’ 10 Largest
                                      OrigInatora of SLS hxuw Loans Made to
                                      Freshmen and Nonfreshmen Students
                                      (Fiscal Yeara 19874989)




---~
Tabla 11.9:United Student Aid Funds
                                                                                          Kind of student
                                      Lender                                           Freshmen Nonfreshmen            Totals
                                      Indiana National Bank
                                      Indianapolis, IN                                $45,844,693   $43,492,501   $89,337,194
                                      Chase Education Finance Center
                                      Tampa, FL                                        13,116,085    33,825,556    46,941,641
                                                                                                                          -..
                                      Citibank Student Loan Center
                                      Rochester, NY                                    16,636,722    21,523,715    38,160,437
    I                                 Bank of Horton
                                      Horton, KS                                       26,308,690     5,181,331    31,490,021
                                                                                                                       __.-
                                      Bank One-Merrillville
                                      Indianapolis, IN                                  1,046,283    21,906,531    22,952,814
                                      Mid-America Higher Education Loan Program
                                      Longmont, CO                                     10,270,590     7,924,129    18,194,719
                                                                                                                       __--
                                      Signet Bank of Maryland
                                      Baltimore, MD                                     8,583,908     7,849,297    16,433,205
                                                                                                                       .--
                                      Meritor-Philadelphia Savings Fund Society
                                      Education
                                      Philadelphia, PA                                 10,930,248     5,212,664    16,142,912
                                      Merchants National Bank & Trust Co.
                                      Indianapolis, IN                                  7,352,284     6,823,570    14,175,854
                                      Florida Federal Savings & Loan
                                      St. Petersburg, FL                                4,389,815     9,049,885    13,439,700




                    w




                                      Page 20                               GAO/HRD-90.72FS Supplemental Student Loan Lenders
.Appbndix III

Nine Guaranty Agencies’10 Largest Originabrs
of SLS Loans: Defaults From Students
Attending Proprietary and Nonproprietary
Sqhools(F’iscalYears 19874989)
table/ 111.1:Callfornla Student Aid
ComW3sion                                                                                Kind of school
                                      Lender                                      Proprietary    Nonproprietary              Totals
                                      First Independent Trust Company
     (                                Carmichael, CA                             $15,712,100             $4,597,577    $20,309,677
                                      Glendale Federal Savings
                                      Glendale, CA                                  3,806,438               505,473      4,311,911
                                      Great Western Bank
     I                                Northridge, CA                                  769,090             1,830,889      2,599,979
                                      Citibank
                                      Pittsford, NY                                 1,804,050               535,595      2,339,645
                                      Bank of America
                                      Pasadena, CA                                    449,325             1,242,211       1,691,536
                                      Educaid
                                      Sacramento, CA                                  377,628                38,852        416,480
                                      Marine Midland Delaware
                                      Wilminaton. DE                                  334,825                56,434        391,259
                                      Ventura County National Bank
                                      Camarillo, CA                                     9,943                     0           9,943
                                      Imperial Savings & Loan
                                      San Diedo, CA                                          0                    0               0
                                      First Interstate Bank
                                      Pomona, CA                                             0                    0               0


fable 111.2:Colorado Student Loan
Program                                                                                 Kind of school
                                      Lender                                     Proprietary    Nonproprietary              Totals
                                      First America Savings Bank
                                      Longmont, CO                                  $671,675               $42,860        $714,535
                                      Denver National Bank
                                      Denver, CO                                     651,328                 48,269        699,597
                                      First National Bank of Southeast Denver
                                      Denver, CO                                      119,161               104,036        223,197
                                      Chemical Bank
                                      Boulder, CO                                     126,296                18,148        144,444
                                      Colorado National Bank of Denver
                                      Denver, CO                                       48,436                59,500        107,936
                                      Union Bank & Trust Company
                                      Denver, CO                                       75,445                     0         75,445
                                      United Bank of Denver
                                      Denver.
                                            ~.- CO                                      8,200                34,264         42,464
                                      United Bank of Colorado Springs
                                      Colorado Springs, CO                                   0                4,000          4,000
                                      First National Bank of Boulder
                                      Boulder, CO                                       1,235                     0           1,235
                                      First Interstate Bank of Denver
                                      Denver. CO                                             0                    0               0




                                      Page 21                               GAO/HID99-72FS       Supplemental Student Loan Lenders
                                          Appendix III
                                          Nine Guaranty Agencies’ 10 Largest
                                          Originators of SIB Loans: Defaults From
                                          Students Attending Proprietary and
                                          Nonproprietary Schools
                                          (Flscal Years 1987-1989)




~-~____~~~       ~~
Tab14 111.3:Higher Education Assistance
Founjrlatlon                                                                                 Kind of school
                                          Lender                                    Proorietarv      Nonwokwietarv
                                                                                                        . .                   Totals
                                          Bank of Horton
                                          Horton, KS                                 $62,729,432          $427,041       $63,156,473
                                          The Chase Manhattan Bank
                                          New Hyde Park, NY                            21,052,206          424,560        21,476,766
                                          Trans World Insurance Company
                                          Overland Park, KS                            17,015,610         1,008,190       18,023,800
                                          Citibank
                                          Rochester, NY                                12,382,515         2,488,875       14,871,390
                                          Pennbank Student Loan Center
                                          Meadville, PA                                14,578,244          136,217        14,714,461
                                          Bank IV of Wichita
                                          Wichita, KS                                   8,634,249         1,798,717       10,432,966
                                          First Independent Trust Company
                                          Carmichael, CA                                6,698,450          427,719         7,126,169
                                          First America Savings Bank
                                          Longmont, CO                                  6,781,765           86,096         6,867,861
                                          Boatmen’s First National Bank
                                          Kansas City, MO                               6,597,595            15,867        6,613,462
                                          Norwest Bank of South Dakota
                                          Sioux Falls, SD                                996,900         3,075,845         4,072,745


TabI? 111.4:Massachusetts Higher
Eduqation Assistance Corporation                                                            Kind of school
                                          Lender                                     Proprietary    Nonproprietary            Totals
                                          Bank of New England-Worcester
                                          Worcester, MA                                 $223,797          $158,072         $381,869
                                          Merchants National Bank
                                          Leominster,                                       9,716          177,616           187,332
                                          ___-.    -__. MA
                                          Harvard University
                                          Cambridge, MA                                         0          125,086           125,086
                                          --.._
                                          First National Bank of Boston
                                          Boston, MA                                       10,788           37,051            47,839
                                          Bay Bank-Norfolk
                                          Dedham. MA                                            0           44,958            44.958
                                          Bay Bank-Harvard Trust
                                          Dedham, MA                                            0           31,940            31,940
                                          Shawmut Bank _
                                          Cambridge, MA                                         0             9,084            9,084
                                                     _____
                                          Bay Bank-Middlesex
                                          Dedham, MA                                            0             6,697            6,697
                                          Pennsylvania Higher Education
                                          Assistance Agency-Law Unit
                                          Camp Hill, PA                                         0                 0                0
                                          Key Bank of Maine
                                          Auousta, ME                                           0                    0             0




                                          Page 22                               GAO/HRD-90-72JW Supplemental Student Loan Lenders
.
                                        Appendix III
                                        Nine Guaranty Agencies’ 10 Largest
                                        CMginatoFs of SIS Loans: Default8 from
                                        Students Attending Proprietary and
                                        Nonproprietary Schools
                                        (Fiscal Years 1987.1989)




    Tab14 111.5:Nebraeka Student Loan
    Prog(am                                                                                    Kind of school
                                        Lender                                          Proprietary    Nonproprietary           Totals
                                        Nebraska Higher Education Loan Program
                                        Lincoln, NE                                      $3,476,130        $2,067,685       $5543,815
                                        Bank of Horton
                                        Horton, KS                                         1,686,849          457,083        2,143,932
                                        Union Bank & Trust Company
                                        Lincoln, NE                                         750,291           625,160        1,375,451
                                        Packers Bank & Trust
                                        Omaha, NE                                            40,367           266,550          306,917
                                        Farmers & Merchants Bank
                                        Colby, KS                                           226,949                     0      226,949
                                        Union Bank & Trust Company
                                        Denver, CO                                           71,854                     0       71,854
                                        %lumbia Savings Association
                                        Lincoln, NE                                          40,415            20,982           61,397
                                        -~
                                        Mid-Continent Federal Savings
                                        El Dorado, KS                                        21,095              2,500          23,595
                                        -____
                                        Mid-America Higher Education Loan
                                        Program
                                        Longmont, CO                                         23,415                     0       23,415
                                        Boatmen’s First National Bank
                                        Lawrence, KS                                               0                    0               0


    Tabl/e Ill.6 Ohio Student Loan
    Conlmission                                                                                Kind of school
                                        Lender                                          Proprietary    Nonproprietary           Totals
                                        Ameritrust
                                        Harrisburg, PA                                   $1,137,754          $277,974       $1,415,728
                                        Bank One of Columbus
                                        Columbus, OH                                        412,996           360,053          773,049
                                        .----
                                        Bank One of Cleveland
                                        Cleveland, OH                                       274,936             11,025         285,961
                                        --__
                                        Chemical Bank
                                        Columbus, OH                                        111,412                     0      111,412
                                                    --
                                        Bank One of Akron
                                        Akron, OH                                            42,681            48,208           90,889
                                        Huntington Bank
                                        Lawrence, KS                                         61,984                     0       61,984
                                        Bank One of Dayton
                                        Dayton, OH                                           49,231              5,183          54,414
                                                         .-
                                        Fifth Third Bank
                                        Cincinnati, OH                                       29,712              7,428          37,140
                                        _--~-
                                        State Home Savings
                                        Bowling Green, OH                                      2,732            24,728          27,460
                         Y
                                        Bank One of Youngstown
                                        Youngstown, OH                                         2,282             3,745           6,027




                                        Page 23                                  GAO/HRD@O-72F’SSupplemental Student Loan Lenders
                                       Appendix III
                                       Nine Quxranty Agendes’ 10 Largest
                                       Orlginatore of SLB Loans: Defaults From
                                       Students Attending Proprietary and
                                       Nonproprietary Schools
                                       (Fiscal Years 1987-1989)




Tableilll.7: Pennsylvania Higher
Educqtion Assistance Agency                                                                   Kind of school
      ,                                Lender                                          Proprietary    Nonproprietary            Totals
                                       Pennsylvania Hi her Education Assistance
                                       Agency Higher Ii!ducation Loan Program
                                       Harrisburg, PA                                    $1,635,746          $113,415       $1,749,161
     ,                                 PNC Education Loan Center
                                       Pittsburgh, PA                                        21,263           334,578          355,841
     I
                                       Philadelphia Savings Fund Society
                                       Philadelphia, PA                                     120,448            54,463          174,911
                                       Fidelity Bank
                                       Upper Darby, PA                                        7,214           125,904          133,118
                                       Commonwealth National Bank
                                       Pittsburgh, PA                                        10,488            45,715           56,203
                                       Meridian Bank
                                       Reading, PA                                            2,434            16,686           19,120
                                       Philadelphia National Bank
                                       Philadelohia.
                                                .    PA                                       1,793             5,794            7,587
                                       Dauphin Deposit Bank and Trust Company
                                       Harrisburg, PA                                             0             3,333            3,333
                                       Mellon Bank
                                       New Town, PA                                               0                     0            0
                                       Podiatry School Program
                                       Harrisbura. PA                                             0                     0            0


TabI+ 111.8:Texas auaranteed Student
Loarl; Corporation                                                                             Kind of school
     1                                 Lender                                           Proprietary    Nonproprietary           Totals
                                       Southside State Bank
                                       Tyler, TX                                         $4,687,135          $280,684       $4,967,819
                                       University Federal Savings Association
                                       Austin, TX                                         4,289,969           416,416        4,706,385
                                       Windsor Savings Association
                                       Austin, TX                                         1,050,995            35,003        1,085,998
                                       Bank One of Texas
                                       Fort Worth, TX                                       246,820           471,721          718,541
                                       First Independent Trust Company
                                       Carmichael, CA                                       487,918              1,000         488,918
                                       Bankers Credit Corporation
                                       Waco, TX                                              33,252              6,064          39,316
                                       to;;   Higher Education Coordinating
                                       Austin, TX                                                 0             13,948          13,948
                                       Village Savings Bank
                                       Houston. TX                                                0              4,000           4,000
                                       Bank of Horton
                                       Horton, KS                                                 0                     0            0
                                       El Paso Savings Association
                                       Austin, TX                                                 0                     0            0




                                       Page 24                                  GAO/HRD-90-72FS Supplemental Student Loan Lenders
                                      Appendix III
                                      Nine Guarauty Agencies’ 10 Largest
                                      Orlginatore of SL8 Loans: Default8 Fkom
                                      Students Attending Proprietary and
                                      Nonproprietary Schoole
                                      (Fiscal Years 19874989)




Table ~111.9:
           United Student Aid Fund8
      ,
                                                                                         Kind of school
                                      Lender                                      Proprletsry    Nonproprietary         Totals
                                      Indiana National Bank
                                      Indianapolis, IN                             $7,493,079        $2,957,397    $10,450,476
                                      Chase Education Finance Center
                                      Tampa, FL                                     1,146,980          1,148,119     2,295,099
                                      Merchants National Bank & Trust Co.
                                      Indianapolis, IN                              I,185096            526,447      1,711,543
                                      Bank of Horton
                                      Horton, KS                                    1,492,158            37,257      1529,415
                                      Meritor-Philadelohia Savinas Fund
                                      Society-Education         U
                                      Philadelphia, PA                              1,358,384           129,690      1,488,074
                                      Signet Bank of Maryland
                                      Baltimore, MD                                   714,265           403,451      1,117,716
                                      Florida Federal Savings & Loan
                                      St. Petersburg, FL                             377,284            384,552        761,836
                                      Citibank Student Loan Center
                                      Rochester. NY                                  453.094            223.115        676.209
                                      Mid-America Higher Education Loan
                                      Program
                                      Longmont, CO                                   407,470            137,657        545,127
                                      Bank One-Merrillville
                                      Indianapolis, IN                                 31,829            90,085        121,914




                                      Page 25                               GAO/HRD-90.72F’S Supplemental Student Loan Lenders
Ap&ndix      IV                                                                                                                        ,

Nine Guaranty Agencies’10 Largest Originabrs
of SLS Loans: Defaults From Freshmen and
Nonfreshmen Students FiscallYears 19874989)
lable~ IV.l: California Student Aid
Com+isslon                                                                                Kind of student
                                      Lender                                           Freshmen Nonfreshmen               Totals
                                      First Independent Trust Company
                                      Carmichael, CA                                  $16,155,939       $4,153,738   $20,309,677
                                      Glendale Federal Savings
                                      Glendale, CA                                      3,992,935          318,976     4,311,911
                                      Great Western Bank
                                      Northridge, CA                                        963,577      1,636,402     2,599,979
                                      Citibank
     )                                Pittsford, NY                                     2,066,598          273,047     2,339,645
                                      Bank of America
                                      Pasadena, CA                                      1,270,531          421,005     1,691,536
                                      Educaid
                                      Sacramento, CA                                        370,277         46,203       416,480
                                      Marine Midland Delaware
                                      Wilmington, DE                                        342,419         48,840       391,259
                                      Ventura County National Bank
                                      Camarillo, CA                                           9,943              0         9,943
                                      Imperial Savings & Loan
                                      San Diego, CA                                               0              0                 0
                                      First Interstate Bank
                                      Pomona, CA                                                  0              0                 0


Tablb IV.2: Colorado Student Loan
Progbam                                                                                   Kind of student
                                      Lender                                           Freshmen Nonfreshmen               Totals
                                      First America Savings Bank
                                      Longmont, CO                                       $620,346          $94,189      $714,535
                                      Denver National Bank
                                      Denver, CO                                            541,233        158,364       699,597
                                      First National Bank of Southeast Denver
                                      Denver, CO                                            138,770         84,427       223,197
                                      Chemical Bank
                                      Boulder, CO                                           108,661         35,703       144,444
                                      Colorado National Bank of Denver
                                      Denver, CO                                             83,914         24,022       107,936
                                      Union Bank & Trust Company
                                      Denver, CO                                             52,639         22,806        75,445
                                      United Bank of Denver
                                      Denver, CO                                             13,896         28,568        42,464
                                      United Bank of Colorado Springs
                                      Colorado Springs, CO                                        0          4,000         4,000
                                      First National Bank of Boulder
                                      Boulder, CO                                             1,235              0          1,235
                                      First Interstate Bank of Denver
                      v               Denver. CO                                                    0            0                 0




                                      Page 26                               GAO/~SO-72F’S      Supplemental Student Loan Lenders
.

                                        Appendtv IV
                                        Nine Guaranty Agencies’ 10 Largest
                                        orighators of S W Loans: Defaults Fkom
                                        Freshmen and Noufreshmen Students Piscal
                                        Years 1987-1989)




          Higher Education Assistance
                                                                                          Kind of student
                                        Lender                                         Freshmen Nonfreshmen            Totals
                                        Bank of Horton
                                        Horton, KS                                    $61,439,369   $1,717,104    $63,156,473
                                        The Chase Manhattan Bank
                                        New Hyde Park, NY                              16,935,081     4,541,685    21,476,766
                                        Trans World Insurance Company
                                        Overland Park, KS                              16,987,610     1,036,190    18,023,800
                                        Citibank
                                        Rochester, NY                                  12,050,710     2,820,680    14,871,390
                                        Pennbank Student Loan Center
                                        Meadville, PA                                  13,744,499      969,962     14,714,461
                                        Bank IV of W ichita
                                        W ichita, KS                                    9,812,960      620,006     10,432,966
                                        First Independent Trust Company
                                        Carmichael, CA                                  5,965,948     1,160,221     7,126,169
                                        First America Savings Bank
                                        Longmont, CO                                    5,708,009     1,159,852     6,867,861
                                                                                                                          -
                                        Boatmen’s First National Bank
                                        Kansas City, M O                                6,460,362      153,100      6,613,462
                                        Norwest Bank of South Dakota
                                        Sioux Falls, SD                                 1,183,893     2,888,852     4,072,745


Table! W-4: Massachusetts Higher
Educgtion Assistance Corporation                                                          Kind of student
                                        Lender                                         Freshmen Nonfreshmen            Totals
                                        Bank of New England-Worcester
                                        Worcester, MA                                   $221,007      $160,862      $381,869
                                        Merchants National Bank
                                        Leominster, MA                                     10,209      177,123        187,332
                                        Harvard University
                                        Cambridae.
                                        ____ --...- “I---
                                                          MA                                    0      125,086        125,086
                                                                                                                          -
                                        First National Bank of Boston
                                        Boston, MA                                         28,956        18,883        47,839
                                        ---.
                                        Bay Bank-Norfolk
                                        Dedham. MA                                              0       44,958        44,958
                                        Bay Bank-Harvard Trust
                                        Dedham, MA                                              0       31,940        31,940
                                        - .-~._
                                        Shawmut Bank
                                        Cambridge, MA                                       2,552        6,532          9,084
                                        -___
                                        Bay Bank-Middlesex
                                        Dedham, MA                                              0        6,697          6,697
                                        ___..-------
                                        Pennsylvania Higher Education Assistance
                                        Agency-Law Unit
                                        Camp Hill, PA                                           0             0        --.   0
                                                     ____-.
                                        Key Bank of Maine
                                        Augusta, ME                                             0            0               0




                                        Page 27                             GAO/HRD-OO-72FSSupplemental Student LOan Lenders
                                   Appendix IV
                                   Nine Guamnty Agencies’ 10 Largest
                                   Originators of SL8 Loans: Defaults From
                                   Freshmen and Nonfreshmen Students Fiscal
                                   Years 1987-1989)




Tabl IV.5: Nebraska Student Loan
Prog(3am                                                                            Kind of student
     ~                             Lender                                        Freshmen Nonfreshmen            Totals
     I                             Nebraska Higher Education Loan Program
                                   Lincoln, NE                                   $5,241,661      $302,154    $5543,815
                                   Bank of Horton
                                   Horton, KS                                     2,131,686        12,246      2,143,932
                                   Union Bank & Trust Company
                                   Lincoln, NE                                     1,293,570       81,881      1,375,451
                                   Packers Bank & Trust
                                   Omaha, NE                                        302,917         4,000       306,917
                                   Farmers & Merchants Bank
                                   Colby, KS                                        226,949             0       226,949
                                   Union Bank & Trust Company
                                   Denver, CO                                        49,116        22,738        71,854
                                   Columbia Savings Association
                                   Lincoln, NE                                       61,397             0        61,397
                                   Mid-Continent Federal Savings
                                   El Dorado, KS                                     21,095         2,500        23,595
                                   Mid-America Higher Education Loan Program
                                   Lonamont. CO                                      23,415             0        23.415
                                   Boatmen’s First National Bank
                                   Lawrence, KS                                            0            0                0


Tablp IV.6: Ohio Student Loan
Commission                                                                          Kind of student
                                   Lender                                        Freshmen Nonfreshmen            Totals
                                   Ameritrust
                                   Harrisbura. PA                                $1,251,242      $164,486    $I,41 5,728
                                   Bank One of Columbus
                                   Columbus, OH                                     419,986       353,063       773,049
                                   Bank One of Cleveland
                                   Cleveland, OH                                    265,865        20,096       285,961
                                   Chemical Bank
                                   Columbus, OH                                     103,615         7,797       111,412
                                   Bank One of Akron
                                   Akron, OH                                         38,170        52,719        90,889
                                   Huntington Bank
                                   Lawrence, KS                                      61,984             0        61,984
                                   Bank One of Dayton
                                   Dayton, OH                                        40,149        14,265        54,414
                                   Fifth Third Bank
                                   Cincinnati, OH                                    33,151         3,989        37,140
                                   State Home Savings
                                   Bowlina Green. OH                                  5.804        21,656        27,460
                                   Bank One of Youngstown
                    w              Youngstown, OH                                     2,282         3,745         6,027




                                   Page 28                            GAO/HRD-90-72FS Supplemental Student Loan Lenders
                                        Appendix IV
                                        Nine Guaranty Agencies’ 10 Largest
                                        Originators of SIB Loans: Defaults From
                                        Freshmen and Nonfreslunen Students Fiscal
                                        Years 19874989)




Table Ii .I: Pennsylvania Higher                                                   ,
Educa ion Assistance Agency                                                                    Kind of student
      r                                                                                                                     Totals
                                        Lender                                              Freshmen Nonfreshmen
                                        Pennsylvania Hi her Education Assistance
                                        Agency Higher I! ducation Loan Program
                                        Harrisburg, PA                                        $918,246      $830,915    $1,749,161
                                        PNC Education Loan Center
                                        Pittsburgh, PA                                          15,017       340,824       355,841
                                        Philadelphia Savings Fund Society
                                        Philadelphia, PA                                        77,017        97,894       174,911
      I                                 Fidelity Bank
                                        Upper Darby, PA                                          7,602       125,516       133,118
                                        Commonwealth National Bank
                                        Pittsburgh, PA                                           8,000        48,203        56,203
                                        Meridian Bank
                                        Reading, PA                                              5,000        14,120        19,120
                                                                                                                              -....-
                                        Philadelphia National Bank
                                        Philadelphia, PA                                         1,793         5,794         7,587-.
                                        Dauphin Deposit Bank and Trust Company
      ,                                 Harrisburg, PA                                               0         3,333         3,333
                                        Mellon Bank
                                        New Town PA                                                  0             0              0
                                        Podiatry School Program
                                        Harrisburg, PA                                               0             0              0


Table iIV.8: TeXa8 Guaranteed Student
Loan Forporation                                                                               Kind of student
                                        Lender                                              Freshmen Nonfreshmen            Totals
                                        Southside State Bank
                                        Tyler, TX                                           $4,664,789      $303,030    $4,967,819
                                        University Federal Savings Association
                                        Austin, TX                                           4,210,479       495,906     4,706,385
                                        Windsor Savings Association
                                        Austin, TX                                           1,036,519        49,479     1,085,998
                                        Bank One of Texas
                                        Fort Worth, TX                                         412,043       306,498       718,541
                                        First Independent Trust Company
                                        Carmichael, CA                                         436,580        52,338       488,918
                                        Bankers Credit Corporation
                                        Waco, TX                                                33,252         6,064        39,316
                                                                                                                                -
                                        Texas Hi her Education Coordinating Board
                                        Austin, T%                                                   0        13,948        13,948
                                        Village Savings Bank
                                        Houston, TX                                                  0         4,000         4,000
                                        Bank of Horton
                                        Horton, KS                                                   0             0              0
                      0
                                        El Paso Savings Association
                                        Austin, TX                                                   0             0              0




                                        Page 29                                  GAO/HRD-90-72FS Supplemental Student Loan Lenders
                                       Appendix IV
                                       Nine Guaranty Agencies’ 10 Largest
                                       Orightore of SLS Loans: Default.9 From
                                       Freshmen and Noufreshmen Students Fiscal
                                       Years 19874989)




Table IV.9: Untted Student Aid Funds
                                                                                           Kind of student
                                       Lender                                           Freshmen Nonfreshmen            Totals
                                       Indiana National Bank
                                       Indianapolis, IN                                 $7,027,730    $3,422,746   $10,450,476
                                       Chase Education Finance Center
                                       Tampa, FL
                                           1
                                                                                         1,317,287       977,812     2,295,099
     ,



                                       Merchants National Bank & Trust Co.
                                       Indianapolis, IN                                  1,153,984       557,559      1,711,543
                                       Bank of Horton
                                       Horton, KS                                        1,392,475       136,940     1,529,415
                                       Mentor-Philadelphia Savings Fund Society-
                                       Education
                                       Philadelphia, PA                                  1,342,674       145,400      1,488,074
                                       Signet Bank of Maryland
                                       Baltimore, MD                                       84 1,453      276,263      I,1 17,716
                                       Florida Federal Savings & Loan
                                       St. Petersburg, FL                                  417,926       343,910       761,836
                                       Citibank Student Loan Center
                                       Rochester, NY                                       555,485       120,724       676,209
                                                                                                                            -
                                       Mid-America Higher Education Loan Program
                                       Longmont, CO                                        389,999       155,128       545,127
                                       Bank One-Merrillville
                                       Indianapolis, IN                                     35,040        86,874       121,914




                                       Page 30                               GAO/HRD-90-72FS Supplemental Student Loan Lenders
Ap;endix V

Major Contributors to This l3eport


                       Joseph J. Eglin, Assistant Director, (202) 246-9623
Htian Resources        Christopher C. Crissman,Assignment Manager
Div sion
Wa: hington, DC.
                       Charles M. Novak, RegionalAssignment Manager
SeaAleRegionalOffice   Charles H. Shervey, Evaluator-in-Charge
    ,                  Jane A. Dunkel, Evaluator
                       Sharon K. Eubank, Evaluator
    I                  Joseph P. Martorelli, Programmer/Analyst




             Y




                       Page 51                       GAO/HRD-BO-72Fs Supplemental Student Loan Lendera
I l&dated GAO Products


                Supplemental Student Loans: Who Borrows and Who Defaults (GAO/HRD-
                      Oct. 17, 1989).
                oo-3w8,

                Guaranteed Student Loans: Analysis of Student Default Rates at 7,800
                PostsecondarySchools(GAO/HRDSO-63BR, July 6, 1989).
                Defaulted Student Loans: Preliminary Analysis of Student Loan Borrow-
                ers and Defaulters (GAo/HRD-~~-~~~BR, June 14,1988).
                GAO’SViews on the   Default Task Force’s Recommendationsfor Reducing
                Default Costs in the Guaranteed Student Loan Program (GAO/T-HRD-88-7,
                Feb. 2, 1988).
                Guaranteed Student Loans: Potential Default and Cost Reduction
                Options (GAO/HRD-~~-~~BR,Jan. 7, 1988).
                Guaranteed Student Loans: Analysis of Insurance Premiums Charged by
                Guaranty Agencies(GAO/HRD-88-16BR, Ott, 7, 1987).
                Guaranteed Student Loans: Legislative and Regulatory ChangesNeeded
                to ReduceDefault Costs (GAO/HRD-87-76, Sept. 30,1987).

                Defaulted Student Loans: Private Lender Collection Efforts Often Inade-
                quate (G~o/~~~-87-48, Aug. 20, 1987).

                Defaulted Student Loans: Guaranty Agencies’Collection Practices and
                Procedures(GAO/HRD-~~-~~~BR,July 17, 1986).




  (104era)      Page32                       GAO/HlUW@72F’
                                                        Supplemental
                                                         S        StudentLoanLenders
lh~ut~st,s for copit      of (;A() rtlports   shorllcl lw wnt   t,o:

I’S (hwral    Acwunting         Offiw
Post Offiw Hox 6015
(hit Iwrshrg,  Maryland         20877

‘I’t~lt~phoIlt* 202-275-6241

‘lb first. five copiw     of t5wh report, art’ fret*. Atlditional       copit~s are
!b!.oo wtt+h.

‘I’hrrt* is a 25”0 tliscoont   011 orders for 100 or Inow copies mailt*tl to H
sitlgltb addrws.

Ortlt~rs must, tw prepititl by cash or by check or rnowy               order made
OII 1.to t tit* Sn~>t~ri~lt.t~ndt~r~~
                                    of Ihtwmtwt~s.