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DOCUMENT RESURE
0245 - [A1812846]
The National Direct Student Loan Program Requires More Attention
by the Office of Education and Participating Institutions.
HRD-77-109; B-164031(1). June 27, 1977. 18 pp.
Report to Secretary, Department of Health, Education, and
Welfare; by Gregory J. Ahart, Director, Human Resources Div.
Issue Area: Education, Training, and Employment Programs:
Student Assistance Programs for Post-Secondary EducatioD
(1101).
Contact: Human Resources Div.
Budget Function,: Education, Manpower, and Social Services:
Higher Education (502).
Organization Concerned: Office of Education.
Congressional Relevance: House Ccmsittee on Education and Labor;
Senate Committee on Human Resources.
Authority: Fducation Amendments of 1972 (P.L. 92-318). National
Defense Education act of 1958, as &mended, title II. Higher
Education Act of 1965, as amended.
The National Direct Student Loan (NDSL) program, one of
three student financial aid programs administered by the Off.ice
of Education (OE), provides for the establishment of loan funds
at postsecondary educational institutions so that they can make
loans to qualified students. r4ndings/Conclusions: Several
problems were noted in the adaxistration of the program.
Because OR has not provided adequate program guidance for
participating institutions, there has been a lack of
understanding regarding requirements. The most current ND3L
program manual, published in 1967, was out of print, and did not
contain current program regulations. It was also found that in
some cases students were receiving veterans' benefits in
addition to student loans. Another area in need of improvement
was in loan servicing and collection. Concerns were expressed
about increasing delinquency rates and failure to adhere to
collecting procedures. OR is responsible for monitoring the
performance of participating institutions, but it has not always
checkel on the accuracy of information submitted by
institutions, and followups on audits have not been adequate.
Recommendations: The Commissioner of Education should: (1)
provide necessary program guidance to institutions; (2) attempt
to collect NDSL accounts before writing then off; (3) instruct
financial aid officers to coordinate various types of aid
received by students; (4) instruct institutions with high
delinquency rates to follow prescribed collection procedures;
(5) modify the processing of fiscal operations reports to allow
for more timely tabulation of data and periodically test
accuracy of information; and (6) develop guidelines on
conducting on-site reviews. (HTV)](ViewImageLocal?handle=hein.gao/gaobaacih0001&div=1&collection=&method=preview&ext=.png&size=3)