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

CD-77-1 1 (1977-08-11)

handle is hein.gao/gaobaacnt0001 and id is 1 raw text is: DOCU4ENT RESUTNE 03085 - rA22734071 Collection Efforts Vo': Keeping Pace with Growing Number of Defaulted Student Loans. Cn-77-1: B-117604. August 11, 177. 25 pp, + 3 appendices (8 pp.). Peport to Secretary, Department of Health, Education, and Welfare; by James D. Martin (for Gregary J. Ahart, Director, Human Pesources Div.). Issue Area: Education, Trainir4, P:d Employment Programs: Student Assistance Pzgra .s for Vost-Secondary Fducation (1101). Contact: Claims Div. Budget Function: Education, Manpower, and Sucial Services: Higher Education (502). Organization Concerned: Office of Education. Congressional Relevance: House Committee on Education and LiboL; Senate Committee on Human Resources. Authority: Federal Claims Collection Act of 1966 (31 U.S.C. 9511. Higher Education kect of 1965, title Ti, part B. Educition Amendment3 of 1976. 4-- U.S.C. 2015,. 4 C.F.R. 101-105. 45 C.F.R. 73.735-101 a;. Although some positive actions are being ta'-on by the Office of fducation to -ollect lefaulted student loa. , th- problem has reached serious proportions. Findings/conclusions: The Office of Education guaranteel 4 million student loans amountina to $4.5 billion through September 1976. it had to pay about $287 million to lending institutions during the same t .ne because abcut one o! every six loans had bpen defaulted after the student completed or withdrew from school. After paying lenders, the Office has to collect the defaulted loans. rhrougil September 1976, only $25 million had been collectee--mostly through monthly payments. Collectors cannot handle their workloads, and the trend is toward ever larger, less manageable workloads. Recommendations: The Secretary of Health, Education, and Welfare should direct the Commissioner of Education to effectively process deftulted student loans to the point of collection, referral for legal accion, or termination. This should include: requiring the contractor to document unsuccessful collection efforts; instructing collectors to request debtor-prepared financial statements; revising quidelines on compromise; developing -uidelines on collecting from current or former Federal employees; requiring every regional collection staff to develop the capability for referring defaulted loans directly to U.S. attorneys; and establishing a system for monitoring regional office collection activity. (Author/SC)

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