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HEHS-94-97R 1 (1994-03-09)

handle is hein.gao/gaobackmy0001 and id is 1 raw text is: 


United States
General Accounting Office
Washington, D.C. 20548

Human Resources Division

B-252172


March 9, 1994

The Honorable Edolphus Towns
Chairman, Subcommittee on Human Resources
  and Intergovernmental Relations
Committee on Government Operations
House of Representatives

The Honorable Paul Simon
United States Senate

This letter responds to your requests to update information
previously reported on student loan default rates at
Historically Black Colleges and Universities (HBCU).1 As
agreed with your offices, our objectives were to

    compare fiscal year 1991 HBCU cohort default rates with
    cohort default rates in prior years;

    update our earlier estimates of the number of HBCUs
    that, as a result of high cohort default rates, could
    either lose their eligibility for the Federal Family
    Education Loan (FFEL) Program or have their eligibility
    for all student aid authorized by title IV of the
    Higher Education Act of 1965, as amended, subjected to
    a state review; and

    estimate the numbers of HBCUs with cohort default rates
    above thresholds established by the Department of
    Education to initiate sanctions that would limit,
    suspend, or terminate their participation in student
    aid programs.

In general, the cohort default rate is the percentage of an
institution's Federal Stafford loan (subsidized and
unsubsidized) and Supplemental Loans for Students (SLS)
borrowers who enter repayment status in a fiscal year and
default by the end of the following fiscal year. Stafford,
Federal Parent Loans for Undergraduate Students (PLUS),

'Student Loans: Default Rates at Historically Black
Colleges and Universities (GAO/HRD-93-117FS, Aug. 19,
1993).


GAO/HEHS-94-97R Default Rates at HBCUs

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