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127222 1 (1985-06-19)

handle is hein.gao/gaobactmj0001 and id is 1 raw text is: 


UNITED STATES GENERAL ACCOUNTING OFFICE
        WASHINGTON, D.C.  20548

                         FOR DELIVERY  AT
                         9:30 A.M. EDT
                         WEDNESDAY, JUNE  19, 1985


~~¶~76 / ~


   I        ) , STATEMENT OF
IZ7222        WILLIAM  J. GAINER, ASSOCIATE DIRECTOR
                     HUMAN RESOURCES DIVISION

                            BEFORE THE
             SUBCOMMITTEE  ON POSTSECONDARY EDUCATION
                              OF THE
                 COMMITTEE ON EDUCATION AND LABOR
             UNITED  STATES HOUSE OF REPRESENTATIVES
                                ON
            THE DEPARTMENT  OF EDUCATION'S ACTIONS TO
                 COLLECT  DEFAULTED STUDENT LOANS

     Mr. Chairman  and Members of the Subcommittee:

     We are pleased  to be here to discuss the General Accounting

Office's review of  the Department of Education's actions to col-

lect defaulted student  loans.  Our evaluation was conducted pur-

suant to this Subcommittee's  request that we study Education's

use of private collection  agencies to collect defaulted student

loans under two loan programs--the  Federal Insured Student Loan

(FISL) and National Direct Student  Loan (NDSL) programs.

Through June 1984, these  two programs have made an estimated

13.7 million loans totaling approximately  $16.8 billion to

assist eligible postsecondary  students.  The Subcommittee asked

us to

     --determine the level of effort made  by the Department and

       its contractors to collect defaulted  loans;

     --determine how often contractors  settled for less than the

       full amount owed; and

     --examine Education's litigation of defaulted  loans,

       including the involvement of the Department  of Justice.

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