About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

HRD-77-17 1 (1976-11-05)

handle is hein.gao/gaobaabrt0001 and id is 1 raw text is: (UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON. D.C. 20548 HUMAN OURC DIVlISSON B-164031 (1) NOV 5 1976 The Honorable The Secretary of Health, Education, and Welfare Dear Mr. Secretary: We are currently surveying the Office of Education's National Direct Student Loan (NDSL) program, authorized by p rt E of title IV of the Higher Education Act of 1965, as amended. This program provides for the establishment of loan funds at institutions of higher education so that they can make long-term, low-interest loans to qualified students who need financial assistance to pursue a course of study on at least a halftime basis. Participating schools are responsible for making and collecting the loans. Our survey is being conducted at the Office of Educa- tion's (OE's) headquarters, HEW regional offices, and partici- pating institutions. As part of the survey, we inquired into the method OE used to compute the loan delinquency rate u.ider the NDSL program. This letter apprises you of our concern with the method used and proposes an alternative which we be- ..ei'e mtr.eue nful3 asees,.the._ND5Ldelinguency.probl-c. NEED TO RECONSIDER METHOD FOR COMPUTING LOAN DELINQUENCY RATE Generally, students are required to begin repaying their loans after they have been out of school for 12 months. When a scheduled payment has not been made for more than 120 days, the loan is considered to be delinquent and the school which made the loan is required to pursue repayment until the loan is collected. While the loan :ecipients bear the ultimate responsibility for delinquent loans, the institutions adminis- tering the loan program can influence the pattern of repayment. The Education Amendments of 1972 provided that NDSL program loans overdue for 2 years could be assigned to OE for further action. Froposed regulations implementing this provision, however, have not been finalized. Therefore, schools continue to carry all past-due loans made since the program's inception az collectible and delinquent. HRD-77-17

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most