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HRD-83-29 1 (1983-02-07)

handle is hein.gao/gaobabmvh0001 and id is 1 raw text is: 


                     UNITED STATES GENERAL ACCOUNTING OFFICE
                 rCTq.t.,x,. WASHINGTON, D.C. 20548


HUMAN RESOURCES                ..
   DIVISIONRELEA                           ..


     B-200138                                         FEBRUARY 7,1983


     The Honorable Charles H. Percy, Chairman
     Subcommittee on Energy, Nuclear
        Proliferation, and Government Processes
     Committee on Governmental Affairs
     United States Senate
                                                              120599
     Dear Mr. Chairman:

          Subject: Noncitizen Student Loan Defaults
                     (GAO/HRD-83-29)

          At your request, we have reviewed defaults under the Na-
      tional Direct Student Loan (NDSL) program by noncitizens at six
      institutions of higher education in the Chicago area. Gen-
      erally, defaults by noncitizens accounted for only a small par t
      of the total defaults at the schools visited and consequently
      had a relatively insignificant impact on NDSL default rates.
      This report provides information on the eligibility of nonciti-
      zens for loans and the results of our work at the six institu-
      tions.

      OBJECTIVES, SCOPE, AND METHODOLOGY

          According to your July 30, 1982, letter, certain Illinois
     colleges and universities have experienced problems in collect-
     ing student loans from noncitizens, particularly those who no
     longer reside in the United States. You asked us to determine
     what authority permits such loans to noncitizens, what discre-
     tion schools have in making such loans, how many noncitizen
     students have loans, and how many are in default.

          We performed our work by (1) reviewing laws and regulations
     on student aid programs, (2) interviewing officials of the
     Department of Education (ED) and the Department of Justice's
     Immigration and Naturalization Service (INS), and (3) reviewing
     records on noncitizens with NDSL defaults at six postsecondary
     institutions in the Chicago area and at INS' Chicago District


                                                            (104537)

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