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127236 1 (1985-06-20)

handle is hein.gao/gaobactml0001 and id is 1 raw text is: I .d I ec W30


                 U.S. GENERAL  ACCOUNTING OFFICE
                        Washington,  D.C.

                                       FOR RELEASE ON DELIVERY
                                       Expected at 10:00 A.M.
     127236                            Thursday, June 20, 1985


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

                            BEFORE THE
            SUBCOMMITTEE ON  POSTSECONDARY EDUCATION
            HOUSE  COMMITTEE ON  EDUCATION AND LABOR
                                ON
            GUARANTEE AGENCY  FUNDING, OPERATIONS, AND
       RESERVES UNDER THE GUARANTEED  STUDENT LOAN PROGRAM


Mr. Chairman and Members of  the Subcommittee:

     We are pleased to be here  today to discuss our review of

guarantee agencies under  the Guaranteed Student Loan Program

(GSLP).  The GSLP is the largest of  six student aid programs

administered by the Department  of Education under title IV of

the Higher Education Act of  1965.

     We are currently working on  three reviews of GSL guarantee

agency operations.  The first of  these--which we will discuss

today--concerns the basic  structure and operation of the

guarantee agency, with emphasis on how  agencies are financed and

how they accumulate, maintain,  and use reserve funds.  Our other

reviews are assessing  (1) the extent to which guarantee agencies

ensure that lenders perform due diligence  on loans submitted for

claims and (2) the adequacy of guarantee  agencies' collection

efforts on defaulted loans which  they hold.




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