Student Loans: Selected Characteristics of Schools in Two Major Federal
Loan Programs (Letter Report, 01/31/97, GAO/HEHS-97-45).
Federal support for student financial aid totaled about $35 billion in
fiscal year 1995. Most of this aid--$27 billion--was provided through
student loans. Eligible postsecondary institutions can choose to give
students access to federally supported loans through either the William
D. Ford Federal Direct Loan Program or the Federal Family Education Loan
Program. This report provides information on comparative levels of
activity in the two programs. Legislation requires the Federal Direct
Loan Program to provide five percent of federal student loans during
school year 1994-95, increasing to at least 60 percent by school year
1998-99. GAO discusses (1) the number of schools in each program and the
distribution of student loans between the two, (2) the loan default rate
for schools associated with each program, and (3) the number of schools
in each program on a state-by-state basis and among the 100 largest
postsecondary schools participating in these federal loan programs.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: HEHS-97-45
TITLE: Student Loans: Selected Characteristics of Schools in Two
Major Federal Loan Programs
DATE: 01/31/97
SUBJECT: Student loans
Colleges/universities
Proprietary schools
Higher education
Loan defaults
Government guaranteed loans
Direct loans
IDENTIFIER: William D. Ford Federal Direct Loan Program
Federal Family Education Loan Program
Dept. of Education Postsecondary Education Participants
System
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Cover
================================================================ COVER
Report to the Chairman, Committee on the Budget, House of
Representatives
January 1997
STUDENT LOANS - SELECTED
CHARACTERISTICS OF SCHOOLS IN TWO
MAJOR FEDERAL LOAN PROGRAMS
GAO/HEHS-97-45
FDLP and FFELP Schools
(104873)
Abbreviations
=============================================================== ABBREV
FDLP - Federal Direct Loan Program
FFELP - Federal Family Education Loan Program
Letter
=============================================================== LETTER
B-275721
January 31, 1997
The Honorable John R. Kasich
Chairman, Committee on the Budget
House of Representatives
Dear Mr. Chairman:
Federal support for student financial aid contributed about $35
billion to postsecondary education in fiscal year 1995. Most of this
aid--$27 billion--
was provided through student loans, authorized under the Higher
Education Act of 1965, as amended. Eligible postsecondary
institutions can choose to give students access to federally
supported loans through either the William D. Ford Federal Direct
Loan Program (FDLP) or the Federal Family Education Loan Program
(FFELP).\1 The Omnibus Budget Reconciliation Act of 1993 (P.L.
103-66, Aug. 10, 1993) called for FDLP to provide 5 percent of
federal student loans during school year 1994-95, increasing to at
least 60 percent by school year 1998-99.
You asked us to provide information about comparative levels of
activity in the two programs. As agreed with your staff, we
determined the following:
-- the number of schools in each program, and the distribution of
student loans between the two;
-- the loan default rate for schools associated with each program;
and
-- the number of schools in each program (1) on a state-by-state
basis and (2) among the 100 largest postsecondary schools
participating in these federal loan programs.
Our review was based on computer analysis of records for all
postsecondary schools obtained from the Department of Education.
Although we did not verify the accuracy of data obtained from the
Department, its databases are readily available and can by used by
the education community for similar analyses. For more explanation
of our scope and methodology, see appendix I.
--------------------
\1 Under FDLP, loans are made by schools on behalf of the government
with federal funds. Under FFELP, students receive loans from private
lenders, such as banks, with the Department of Education ensuring
that the lender will receive payment.
RESULTS IN BRIEF
------------------------------------------------------------ Letter :1
As of October 1996, 1,622 schools were in FDLP (that is, about 26
percent of schools participating in either of the federal loan
programs). While many of these schools in FDLP were also in FFELP,
the remaining 74 percent of all schools were solely in FFELP. Public
4-year and proprietary schools were the most represented kind of
schools in FDLP; 42 and 41 percent of them, respectively, were chosen
by the Department to be in the program. The percentage of federal
student loan volume provided by FDLP was 7 percent in school year
1994-95 and 30 percent in school year 1995-96.
Not enough time has elapsed for loan default information to be
available for FDLP. For FFELP, a comparison of default rates for
schools that used both programs and schools that used FFELP
exclusively showed that rates were similar. For schools in FDLP, the
FFELP default rate was 10.2 percent for the fiscal year 1993 cohort
year; for schools only in FFELP, the rate was 9.9 percent.
Every state has schools in FDLP, although the proportion of schools
in the program varies considerably. Thirteen states had more than
half of their fiscal year 1995 loan volume at FDLP schools, while 17
states had less than 25 percent. The 100 largest schools--a list
that primarily includes 4-year public schools but also includes some
community colleges and private 4-year schools--were evenly divided as
to whether they were in FDLP. Fifty schools were in FDLP; 50 were
not.
BACKGROUND
------------------------------------------------------------ Letter :2
Eligible postsecondary institutions can choose to give students
access to federally supported loans through FFELP or FDLP.\2 Through
FFELP, lenders, mostly from the private sector, make loans to
eligible borrowers, and state-designated guaranty agencies guarantee
the loans against borrower default. In contrast, FDLP, originally
authorized under the Higher Education Amendments of 1992, was
established, in part, to simplify the student loan process by
eliminating private sector lenders and guaranty agencies. Under
FDLP, the government makes the loans, but the schools or Department
of Education contractors actually disburse the funds on behalf of the
government.
The 1993 legislation called for FDLP to be phased in over 5 years,
beginning with FDLP loans representing 5 percent of total new loans
during year 1 (July 1, 1994, through June 30, 1995) and rising to 60
percent or more in year 5 (July 1, 1998, through June 30, 1999). The
Department is responsible for implementing and administering FDLP and
for selecting private contractors for the day-to-day servicing of
loans.
--------------------
\2 Schools can make FDLP loans to some students and allow other
students to obtain loans through FFELP, but a student may not receive
both an FDLP loan and an FFELP loan for the same period of
enrollment.
NUMBER OF FDLP AND FFELP
SCHOOLS AND THEIR LOAN VOLUMES
------------------------------------------------------------ Letter :3
As of October 1996, 1,622 schools were in FDLP (that is, about 26
percent of all FDLP and FFELP schools). These included 354 schools
that entered FDLP in year 3 (July 1, 1996, through June 30, 1997).
As table 1 shows, a larger percentage of proprietary\3 and public
4-year schools were in FDLP than 4-year private and less-than-4-year
public and private schools.
For the purposes of our analysis, "FDLP schools" are those that the
Department expected to participate as of October 1996.\4 Most of
these schools were also FFELP participants, providing FFELP loans to
some students and FDLP loans to others. "FFELP schools" are those
that the Department listed as FFELP participants\5 as of October 1996
but that were not listed by the Department as "FDLP schools."
Table 1
Types of Schools in FDLP and FFELP, as
of October 1996
FDLP schools
FDLP as a
schools\ FFELP percentage of
Type of school a schools all schools
---------------------- -------- -------- --------------
Public 4-year 245 335 42%
Private 4-year 241 1,192 17
Public less-than-4- 170 1,345 11
year
Private less-than-4- 52 477 10
year
Proprietary 914 1,341 41
==========================================================
Total 1,622 4,690 26%
----------------------------------------------------------
Note: For further details, see table II.1 in appendix II.
\a Schools may also be providing FFELP loans.
Although table 1 indicates that fewer 4-year schools than proprietary
schools are participating in FDLP, 4-year schools accounted for most
of the volume of loans for both FDLP and FFELP schools. As shown in
figure 1, public 4-year schools accounted for the largest share of
loans at FDLP schools; private 4-year schools accounted for the
largest share at FFELP schools.
Figure 1: Fiscal Year 1995
Loan Volume for Schools in FDLP
and FFELP, as of October 1996
(See figure in printed
edition.)
As of October 1996, schools that accounted for 38 percent of loan
volume in fiscal year 1995 were in FDLP in year 3.\6 As shown in
table 2, schools accounting for nearly half of public 4-year school
loan volume in fiscal year 1995 were in FDLP during year 3. In
contrast, schools accounting for less than one-quarter of private
4-year school loan volume in fiscal year 1995 were in the program's
third year.
Table 2
Fiscal Year 1995 Loan Volume for Schools
in FDLP and FFELP, as of October 1996
(Dollars in millions)
Loans
to
students Loans to FDLP school
at FDLP students Total volume as a
Type of schools\ at FFELP loan percentage
school a schools volume\b of total\c
------------ -------- ---------- -------- ------------
Public 4- $5,749 $5,904 $11,652 49%
year
Private 4- 2,440 7,614 10,054 24
year
Public less- 335 1,039 1,373 24
than-4-
year
Private 74 204 278 26
less-than-
4-year
Proprietary 1,218 1,139 2,357 52
==========================================================
Total\b $9,815 $15,900 $25,715 38%
----------------------------------------------------------
\a Includes FDLP and FFELP loans to students at FDLP schools. Table
II.2 in appendix II shows the amounts of each type of loan for these
schools.
\b The sum of figures may not equal the total shown because of
rounding.
\c Numbers may not equal the percentage of the figures shown because
of rounding.
See tables II.3 through II.5 in appendix II for details concerning
schools selected to begin participating during year 3.
During year 1, FDLP loans accounted for 7 percent of total FDLP and
FFELP loans. During year 2, FDLP provided about 30 percent of total
loans. As shown in figure 2, loans to students at 4-year public
schools represented the largest portion of FDLP volume in both years.
Figure 2: Comparison of FDLP
and FFELP Loan Volume During
FDLP's First 2 Years
(See figure in printed
edition.)
Note: For data supporting figure 2 and additional data such as FDLP
volume as a percentage of total volume for each type of school, see
tables II.6 and II.7 in appendix II.
Many of the schools participating in FDLP during year 2 continued to
participate, to some extent, in FFELP. Most of the loans made to
students at year 2 schools, however, were FDLP loans, ranging from 67
percent at private less-than-4-year schools to 92 percent at public
less-than-4-year schools (see details in table II.8 in app. II).
--------------------
\3 Proprietary schools are private, for-profit postsecondary
institutions.
\4 These schools had applied to participate in FDLP, were determined
to be eligible, had not indicated their intent to withdraw from or
defer participation in FDLP, and had neither closed nor been
terminated by the Department.
\5 These were listed in the Department's Postsecondary Education
Participants System as FFELP participants, but may or may not have
students that have received FFELP loans.
\6 Loan volumes presented in this report are amounts of loan
commitments before cancellations. They are not and should not be
construed as estimates of current or future loan volume. (See app.
I.)
DEFAULT RATES OF FDLP AND FFELP
SCHOOLS
------------------------------------------------------------ Letter :4
Aggregate default rates for FDLP and FFELP schools were similar (see
fig. 3). Because default rate data were not yet available for FDLP,
we made our analysis for schools that are in FDLP based on their
FFELP default rates. For schools participating in FDLP as of October
1996, 10.2 percent of students that entered their repayment period
for FFELP loans during fiscal year 1993 defaulted by the end of
fiscal year 1994 (commonly referred to as the fiscal year 1993 cohort
default rate\7 ). For schools continuing to participate only in
FFELP, the default rate was 9.9 percent. Although the FFELP rate was
somewhat lower, the aggregate default rate for FFELP proprietary
schools was higher than for proprietary schools that participated in
FDLP.
Figure 3: FFELP Default Rates
for FDLP and FFELP Schools,
1993 Cohort Year
(See figure in printed
edition.)
Note: Data supporting this figure, and similar data for cohort
fiscal years 1991 and 1992, are found in table II.9 in appendix II.
--------------------
\7 Generally, the statutory cohort default rate is (1) the number of
student borrowers with subsidized and unsubsidized loans that entered
repayment in a cohort fiscal year and defaulted on those loans by the
end of the following fiscal year, divided by (2) the total number of
borrowers that entered repayment in the cohort fiscal year. In cases
in which fewer than 30 borrowers entered repayment, the rate used is
an average for a 3-year period.
FDLP PARTICIPATION BY STATE AND
AMONG THE 100 LARGEST SCHOOLS
------------------------------------------------------------ Letter :5
Although FDLP schools were located in all 50 states, participation in
FDLP varied widely by state. As shown in figure 4, FDLP schools as
of October 1996 represented 50 percent or more of fiscal year 1995
loan volume in 13 states but less than a quarter of loan volume in 17
states.
See tables II.10 and II.11 in appendix II for data for each state.
Figure 4: FDLP Schools' Share
of Fiscal Year 1995 Loan Volume
(See figure in printed
edition.)
Of the 100 schools with the largest preliminary fall 1995 enrollments
that were eligible to participate in either of the two student loan
programs as of October 1996, 50 were FDLP participants and 50 were
not. As shown in figure 5, most of these were public 4-year schools,
including 40 FDLP participants and 34 FFELP participants.
The 100 schools are listed in table II.12 in appendix II.
Figure 5: Half of the 100
Schools With the Largest
Enrollments Were FDLP Schools,
as of October 1996
(See figure in printed
edition.)
AGENCY COMMENTS
------------------------------------------------------------ Letter :6
On January 10, 1997, the Department of Education provided us comments
on a draft of this report. The Department said that it could not
precisely replicate the results of our analysis but, with few
exceptions, their results deviated only slightly from ours. It also
said that we did not clearly describe our data or offer a sufficient
explanation of the reasons for the results of our analysis.
We reviewed the specific instances noted by the Department and
revised the report to clarify or correct tables, figures, and
descriptions as appropriate. During our review, we noted various
inconsistencies among sets of data obtained from Department staff,
and we attempted to resolve them to the extent practicable. We have
revised the report to provide more precise descriptions of the
information to help explain apparent inconsistencies.
The Department also suggested that our report discuss the data at
more length and offer explanations for the patterns we observed. The
scope of our review did not include assessing reasons for the trends
and patterns identified. Rather, our analysis was focused on
providing information on schools' loan activities in the two loan
programs.
---------------------------------------------------------- Letter :6.1
We conducted our review from October through December 1996 in
accordance with generally accepted government auditing standards.
We are sending copies of this report to the Secretary of Education,
appropriate congressional committees, and other interested parties.
Please call me at (202) 512-7014 if you or your staff have any
questions regarding this report. Major contributors included Joseph
J. Eglin, Jr., Assistant Director; Charles M. Novak; Benjamin P.
Pfeiffer; and Charles H. Shervey.
Sincerely yours,
Carlotta C. Joyner
Director, Education
and Employment Issues
SCOPE AND METHODOLOGY
=========================================================== Appendix I
Using data from the Department of Education, our work focused on FDLP
and FFELP loan volume during FDLP's first 2 years. We used the term
"federal student loans" to refer to both FDLP and FFELP loan
commitments before cancellations.\8
We excluded consolidated loans. Some schools identified as FFELP
schools as of October 1996 had been FDLP schools earlier and had
students who received FDLP loans in fiscal year 1995.
For some comparisons, we used schools' loan volume data for fiscal
year 1995 because data were not available by program year. We
identified FDLP schools using the Department's list of schools
expected to participate in FDLP as of October 1996. Many of these
schools also made FFELP loans. Schools identified as FFELP schools
are those that were not in FDLP that were listed as FFELP
participants. We did not verify the accuracy of data obtained from
the Department.
To determine the types of schools participating in FDLP and FFELP, we
analyzed Department data concerning schools' characteristics and
placed schools in five groups: public 4-year, private 4-year, public
less-than-4-year, private less-than-4-year, and proprietary. We
excluded foreign schools.\9 No foreign schools were FDLP participants
as of October 1996. We included in the public and private 4-year
groups institutions that offer baccalaureate degrees or more advanced
programs.
To determine the aggregate cohort FFELP loan default rate for each of
these types of schools, we followed the statutory methodology and
calculated aggregate default rates by dividing the total number of
defaulting FFELP borrowers by the total number of FFELP borrowers
entering repayment. We calculated separate rates for schools listed
as participants in FDLP and those that were not. Data needed to
compute default rates for FDLP loans were not available.
To determine how participation in FDLP varies by state, we calculated
for each state the total fiscal year 1995 dollar amount of FDLP and
FFELP loans provided to students attending postsecondary institutions
in each state that the Department listed as FDLP participants as of
October 1996 and the total amount provided to students at FFELP
schools in the state.
To determine which of the 100 largest schools participated in FDLP,
we compared the Department's list of schools participating in the
program with a list of the 100 largest institutions that participate
in federal student loan programs developed from the Department's
National Center for Education Statistics' preliminary fall 1995
enrollment survey data.
In some cases branches of schools use separate Department
identification numbers for administering federal loan programs. For
the purposes of this analysis, we counted each entity using a
separate identification number as a separate school.
--------------------
\8 Loan commitments are the amounts of loans that lenders or schools
commit to make (and guaranty agencies commit to guarantee) to
students or their parents. These amounts can be higher than the net
principal amounts of loans made because of cancellations. A loan may
be cancelled if loan proceeds are never disbursed to the borrower,
the loan check remains uncashed 120 days after disbursement, loan
proceeds in an escrow account are undisbursed for more than 120 days
after being transferred to the account, or the loan is repaid in full
within 120 days of disbursement.
\9 During fiscal year 1995, students at about 500 foreign schools
received approximately $140 million in FFELP loans.
SELECTED INFORMATION ON FDLP AND
FFELP SCHOOLS
========================================================== Appendix II
Table II.1
Types of Schools in FDLP and FFELP, as
of October 1996
FDLP schools\a FFELP schools
-------------- --------------
Percen Percen
tage tage
of of
FDLP FFELP
school school
Type of school Number s Number s
-------------------------------------- ------ ------ ------ ------
Public 4-year 245 15% 335 7%
Private 4-year 241 15 1,192 25
Public less-than-4-year 170 10 1,345 29
Private less-than-4-year 52 3 477 10
Proprietary 914 56 1,341 29
======================================================================
Total 1,622 100%\b 4,690 100%
----------------------------------------------------------------------
\a Includes schools that also make FFELP loans.
\b The sum of the numbers shown is not equal to the total because of
rounding.
Table II.2
Fiscal Year 1995 Loan Volume at FDLP
Schools, as of October 1996
(Dollars in millions)
Type of school FDLP loans FFELP loans Total
---------------- ------------ ------------ ------------
Public 4-year $2,064 $3,685 $5,749
Private 4-year 1,261 1,179 2,440
Public less- 217 118 335
than-4-year
Private less- 71 3 74
than-4-year
Proprietary 1,070 148 1,218
==========================================================
Total\a $4,683 $5,132 $9,815
----------------------------------------------------------
\a The sum of figures may not equal the total shown because of
rounding.
Table II.3
Comparison of Schools the Department
Listed as FDLP Candidates for Year 2 (in
March 1995) and FDLP Candidates for Year
3 (in March 1996) With Schools That
Participated Each Year
Fiscal year
1995 loan
Number of volume
schools\a (millions)
-------------- --------------
Schools Year 2 Year 3 Year 2 Year 3
-------------------------------------- ------ ------ ------ ------
Listed as new FDLP candidates as of 1,309 539 $7,146 $2,611
March
Remained on the list of expected 1,191 297 6,723 851
participants
Deleted from the list of expected 118 242 423 1,760
participants
Not listed as candidates in March but 42 57 208 34
later added to the list of expected
participants
======================================================================
Total new FDLP schools 1,233 354 $6,931 $885
----------------------------------------------------------------------
Note: As of October 1996, 354 schools had agreed to join FDLP in its
third year. An additional 242 schools that were listed as new
participants for year 3 as of March 1996, however, subsequently
declined to participate or otherwise were deleted from the list of
expected participants. By comparison, of the 1,309 schools that had
agreed to join FDLP in its second year, as of March 1995, 118 had
declined to participate (or for some other reason were deleted from
the list of expected participants). The other 1,191 schools were
still listed as year 2 participants as of March 1996. The 242
schools listed as year 3 candidates as of March 1996 that were
deleted from the list had a significantly larger loan volume ($1.76
billion) than the schools dropping out of the program's second year
($423 million). They also had a much larger loan volume than the
schools that agreed to join FDLP in its third year ($885 million).
\a These included schools that withdrew, deferred participation,
closed, or were terminated from the program by the Department.
Table II.4
Number of Schools Selected as New FDLP
Participants for Year 3, and Those
Withdrawn, as of October 1996
Schools
deleted
from the Net
School list of school
s expected s
select participa select
Kind of school ed nts\a ed
------------------------------------------- ------ --------- ------
Public 4-year 65 48 17
Private 4-year 95 74 21
Public less-than-4-year 78 49 29
Private less-than-4-year 26 11 15
Proprietary 385 113 272
======================================================================
All schools 649 295 354
----------------------------------------------------------------------
\a These included schools that withdrew, deferred participation,
closed, or were terminated from the program by the Department.
Table II.5
Fiscal Year 1995 FFELP Loan Volumes for
Schools Selected as New FDLP
Participants for Year 3, and Those
Withdrawn, as of October 1996
(Dollars in millions)
Schools
deleted
from the Net
School list of school
s expected s
select participa select
Kind of school ed nts\a ed\b
------------------------------------------- ------ --------- ------
Public 4-year $1,349 $1,037 $311
Private 4-year 1,094 814 279
Public less-than-4-year 126 74 51
Private less-than-4-year 36 23 14
Proprietary 285 82 203
======================================================================
All schools\c $2,889 $2,031 $859
----------------------------------------------------------------------
\a These included schools that withdrew, deferred participation,
closed, or were terminated from the program by the Department.
\b The difference between the amounts of loans for schools selected
and schools withdrawn may not equal the net shown because of
rounding.
\c The sum of the numbers shown may not equal the total because of
rounding.
Table II.6
Volume of FDLP and FFELP Loans During
Year 1
(Dollars in millions)
FDLP
loans
as a
percen
FFELP tage
FDLP loans\ of
Type of school loans a Total total
-------------------------------------- ------ ------ ------ ------
Public 4-year $1,311 $9,469 $10,78 12%
0
Private 4-year 361 9,210 9,571 4
Public less-than-4-year 21 1,338 1,359 2
Private less-than-4-year 0\b 374 374 0\c
Proprietary 66 2,444 2,510 3
======================================================================
Total\d $1,760 $22,83 $24,59 7%
4 4
----------------------------------------------------------------------
Note: Table excludes about $100 million in FFELP loans to students
attending schools whose type was not indicated.
\a Includes FFELP loans to students at schools participating in FDLP.
\b Less than $500,000.
\c Less than 0.5 percent.
\d The sum of the figures shown may not equal the total because of
rounding.
Table II.7
Volume of FDLP and FFELP Loans During
Year 2
(Dollars in millions)
FDLP
loans
as a
percen
FFELP tage
FDLP loans\ Total\ of
Type of school loans a b total
-------------------------------------- ------ ------ ------ ------
Public 4-year $5,484 $6,862 $12,34 44%
6
Private 4-year 1,986 8,528 10,514 19
Public less-than-4-year 293 1,213 1,506 19
Private less-than-4-year 18 362 380 5
Proprietary 503 2,147 2,649 19
======================================================================
Total\b $8,284 $19,11 $27,39 30%
1\c 5
----------------------------------------------------------------------
Note: Table excludes about $200 million in loans to students
attending schools whose type was not indicated.
\a Includes FFELP loans to students at FDLP schools.
\b The sum of the figures shown may not equal the total because of
rounding.
\c According to Department Budget Service staff, the total, as of
January 1997, for FFELP loans during year 2, was $18.8 billion.
Table II.8
Loans in Year 2 to Students Attending
FDLP Schools
(Dollars in millions)
FDLP loans as
FDLP FFELP a percentage
Type of school loans loans\a of total
------------------ ---------- ---------- --------------
Public 4-year $5,484 $496 92%
Private 4-year 1,986 421 83
Public less-than- 293 23 93
4-year
Private less- 18 24 43
than-4-year
Proprietary 503 415 55
==========================================================
Total $8,284 $1,379 86%
----------------------------------------------------------
\a Table includes about $639 million of FFELP loans to students at
441 schools listed as of March 1996 as FDLP participants whose
students did not receive FDLP loans during year 2.
\b Percentages shown may not equal the percentages of dollar amounts
because of rounding.
Table II.9
FFELP Default Rates for FDLP and FFELP
Schools by Cohort Fiscal Year
(Percentage of borrowers that defaulted)
1991 1992 1993
-------------- -------------- --------------
Type of school FDLP FFELP FDLP FFELP FDLP FFELP
-------------------------------- ------ ------ ------ ------ ------ ------
Public 4-year 6.6% 6.6% 7.2% 6.9% 6.7% 6.7%
Private 4-year 7.1 5.2 7.7 5.8 7.6 5.6
Public less-than-4-year 14.4 14.5 15.1 14.3 14.8 14.5
Private less-than-4-year 19.9 16.2 18.8 15.4 19.4 13.2
Proprietary 19.5 30.2 18.9 25.5 19.4 23.2
================================================================================
All schools 10.5% 11.8% 10.9% 10.9% 10.2% 9.9%
--------------------------------------------------------------------------------
Notes: Default rates for FDLP schools are the percentage of FFELP
borrowers who (1) attended schools participating in FDLP as of
October 1996, (2) entered repayment in the cohort fiscal year, and
(3) defaulted by the end of the following fiscal year. The rates for
FFELP schools are for students attending schools that were not FDLP
participants as of October 1996, but were in FFELP or FDLP as of the
Department's calculation of cohort default rates published in
February 1996. The cohort rates reflect the Department's addenda to
its published rates, but not its subsequent revisions to schools'
default rates.
Default rate data were not available for some schools either because
they had no former students with loans entering repayment in the
cohort years or because the schools were participants in neither
FFELP nor FDLP as of the publication of the default rate data.
Table II.10
FDLP Participation by State, as of
October 1996
FDLP schools
as a
percentage
FDLP Total of total
State/territory schools\a schools\b schools
---------------- ------------ ------------ ------------
Alabama 21 84 25%
Alaska 2 9 22
Arizona 41 85 48
Arkansas 7 84 8
California 218 586 37
Colorado 30 90 33
Connecticut 25 98 26
Delaware 5 12 42
District of 6 23 26
Columbia
Florida 53 227 23
Georgia 46 147 31
Hawaii 1 20 5
Idaho 10 25 40
Illinois 80 265 30
Indiana 28 121 23
Iowa 41 92 45
Kansas 20 84 24
Kentucky 41 178 23
Louisiana 25 132 19
Maine 10 43 23
Maryland 36 90 40
Massachusetts 58 193 30
Michigan 49 182 27
Minnesota 25 117 21
Mississippi 8 60 13
Missouri 31 192 16
Montana 3 34 9
Nebraska 10 55 18
Nevada 6 20 30
New Hampshire 4 37 11
New Jersey 54 140 39
New Mexico 9 39 23
New York 113 467 24
North Carolina 32 147 22
North Dakota 5 31 16
Ohio 69 284 24
Oklahoma 11 115 10
Oregon 24 77 31
Pacific 1 6 17
territories
Pennsylvania 75 416 18
Puerto Rico 35 110 32
Rhode Island 10 28 36
South Carolina 17 79 22
South Dakota 2 30 7
Tennessee 24 148 16
Texas 72 317 23
Utah 5 44 11
Vermont 6 28 21
Virgin Islands 1 1 100
Virginia 48 145 33
Washington 21 93 23
West Virginia 24 74 32
Wisconsin 22 93 24
Wyoming 2 15 13
==========================================================
Total 1,622 6,312 26%
----------------------------------------------------------
\a Schools eligible to participate in FDLP; 90 of these were schools
that Department records show had no fiscal year 1995 FFELP or FDLP
loans.
\b Schools eligible to participate in FFELP or FDLP; 1,152 of these
were FFELP schools that Department records show had no fiscal year
1995 loans.
Table II.11
Fiscal Year 1995 FDLP and FFELP Loan
Volume at FDLP and FFELP Schools, by
State, as of October 1996
(Dollars in millions)
Amount Amount Total Amount at
of loans of loans fiscal FDLP schools
at FDLP at FFELP year as a
State/ schools\ schools\ 1995 percentage
territory\a b b loans\c of total\d
-------------- -------- -------- -------- ------------
Alabama $220 $110 $330 67%
Alaska 2 14 16 10
Arizona 269 326 596 45
Arkansas 17 139 157 11
California 964 1,542 2,506 39
Colorado 256 224 480 53
Connecticut 62 227 289 22
Delaware 23 10 33 71
District of 212 135 347 61
Columbia
Florida 247 825 1,072 23
Georgia 344 294 638 54
Hawaii 0\e 36 37 1
Idaho 108 25 134 81
Illinois 421 572 993 42
Indiana 199 434 633 32
Iowa 276 176 453 61
Kansas 127 178 305 42
Kentucky 137 172 309 44
Louisiana 104 416 520 20
Maine 34 85 118 28
Maryland 225 121 346 65
Massachusetts 494 463 958 52
Michigan 570 275 845 67
Minnesota 158 356 513 31
Mississippi 14 203 216 6
Missouri 260 379 639 41
Montana 32 80 112 29
Nebraska 59 165 224 26
Nevada 25 26 51 49
New Hampshire 8 153 161 5
New Jersey 293 139 432 68
New Mexico 53 73 127 42
New York 921 1,380 2,301 40
North Carolina 111 370 481 23
North Dakota 4 96 100 4
Ohio 524 623 1,147 46
Oklahoma 71 282 353 20
Oregon 178 130 308 58
Pacific 0\e 0 0\e 0
territories
Pennsylvania 174 1,452 1,626 11
Puerto Rico 106 25 131 81
Rhode Island 93 105 198 47
South Carolina 69 249 318 22
South Dakota 8 111 119 7
Tennessee 137 325 462 30
Texas 230 1,158 1,388 17
Utah 16 166 181 9
Vermont 40 67 106 37
Virgin Islands 1 0 1 100
Virginia 428 211 638 67
Washington 220 357 577 38
West Virginia 122 43 166 74
Wisconsin 148 332 480 31
Wyoming 0\e 45 45 1
==========================================================
Total\c $9,815 $15,900 $25,715 38%
----------------------------------------------------------
\a State or territory in which the main campus of each school is
located.
\b Total of FDLP and FFELP loans.
\c The sum of figures shown may not equal the total because of
rounding.
\d The numbers may not equal the percentage shown because of
rounding.
\e Less than $500,000.
Table II.12
Loan Program Participation as of October
1996 for the 100 Schools With Largest
Enrollments in Fall 1995
Preliminar
y
fall 1995 FDLP FFELP
enrollment school school
Rank School \a \b \c
------ ---------------------- ---------- ------ ------
1 University of 51,445 X
Minnesota-Twin Cities
2 Ohio State University- 48,676 X
Main Campus
3 The University of 47,905 X
Texas at Austin
4 Miami-Dade Community 47,060 X
College
5 Arizona State 42,040 X
University-Main
Campus
6 Texas A & M University 41,790 X
7 Michigan State 40,647 X
University
8 Pennsylvania State 39,646 X
University-Main
Campus
9 Houston Community 39,541 X
College System
10 University of Florida 39,412 X
11 University of 39,005 X
Wisconsin-Madison
12 University of Illinois 38,420 X
at Urbana
13 Northern Virginia 37,144 X
Community College
14 University of 36,687 X
Michigan-Ann Arbor
15 Purdue University- 36,427 X
Main Campus
16 University of South 36,142 X
Florida
17 New York University 35,835 X
18 Indiana University- 35,063 X
Bloomington
19 University of Arizona 34,777 X
20 University of 34,713 X
California-
Los Angeles
21 University of 33,996 X
Washington
22 Rutgers University- 33,773 X
New Brunswick
23 University of Maryland 32,908 X
College Park Campus
24 Wayne State University 32,149 X
25 Brigham Young 31,300 X
University
26 University of Houston- 30,766 X
University Park
27 Florida State 30,155 X
University
28 University of Georgia 30,149 X
29 College of Du Page 29,888 X
30 University of 29,630 X
California-Berkeley
31 San Diego State 29,350 X
University
32 Boston University 29,132 X
33 Temple University 29,028 X
34 University of 28,373 X
Cincinnati-Main
Campus
35 North Carolina State 28,250 X
University at Raleigh
36 Florida International 28,171 X
University
37 University of Iowa 28,052 X
38 University of Southern 27,971 X
California
39 Pima Community College 27,866 X
40 University of Colorado 27,624 X
at Boulder
41 University of Utah 27,137 X
42 Indiana University- 26,939 X
Purdue University-
Indianapolis
43 San Francisco State 26,791 X
University
44 Louisiana State 26,573 X
University and
A & M College and
Hebert Law Center
45 University of Central 26,556 X
Florida
46 Portland Community 26,540 X
College
47 Western Michigan 26,537 X
University
48 California State 26,403 X
University-Long Beach
49 University of South 26,346 X
Carolina at Columbia
50 Colorado State 26,340 X
University
51 University of 26,083 X
Pittsburgh-Main
Campus
52 City College of San 26,019 X
Francisco
53 San Jose State 25,997 X
University
54 Tarrant County Junior 25,953 X
College
55 Oakland Community 25,913 X
College
56 Broward Community 25,738 X
College
57 University of 25,723 X
Tennessee-Knoxville
58 Austin Community 25,620 X
College
59 Virginia Polytechnic 25,492 X
Institute and State
University
60 University of 25,267 X
Massachusetts-
Amherst
61 Macomb Community 25,176 X
College
62 University of North 25,114 X
Texas
63 University of Kansas- 25,036 X
Main Campus
64 California State 25,015 X
University-
Northridge
65 University of Illinois 24,870 X
at Chicago
66 Harvard University 24,677 X
67 Iowa State University 24,673 X
68 Northeastern 24,605 X
University
69 University of New 24,605 X
Mexico-Main Campus
70 State University of 24,493 X
New York at Buffalo
71 University of North 24,439 X
Carolina at Chapel
Hill
72 University of Nebraska 24,320 X
at Lincoln
73 Georgia State 24,274 X
University
74 Texas Tech University 24,185 X
75 George Mason 24,172 X
University
76 University of Kentucky 23,794 X
77 University of Akron 23,640 X
Main Campus
78 Central Michigan 23,575 X
University
79 Valencia Community 23,569 X
College
80 Eastern Michigan 23,142 X
University
81 University of 23,091 X
California-Davis
82 California State 22,796 X
University-
Sacramento
83 Cuyahoga Community 22,785 X
College District
84 California State 22,604 X
University-Fullerton
85 De Anza College 22,545 X
86 University of 22,471 X
Connecticut
87 Southern Illinois 22,418 X
University-
Carbondale
88 University of 22,356 X
Missouri-Columbia
89 University of 22,299 X
Oklahoma-Norman
Campus
90 Northern Illinois 22,218 X
University
91 Mt. San Antonio 22,202 X
College
92 University of 22,148 X
Pennsylvania
93 Auburn University- 22,122 X
Main Campus
94 The University of 22,121 X
Texas at Arlington
95 University of Toledo 21,991 X
96 Milwaukee Area 21,903 X
Technical College
97 University of 21,891 X
Wisconsin-Milwaukee
98 El Paso Community 21,856 X
College
99 Nassau Community 21,737 X
College
100 University of 21,728 X
Virginia-Main Campus
----------------------------------------------------------
Note: Not all enrolled students receive student loans. In aggregate
during fiscal year 1995, students at the FDLP schools listed above
received about $3.1 billion in loans, including $2.07 billion in FDLP
loans and $1.06 billion in FFELP loans. The students at FFELP
schools listed received about $2.63 billion in FFELP loans.
\a Excludes students not enrolled for credit.
\b Schools that the Department determined to be eligible to
participate in FDLP.
\c Schools that Department records show to be eligible to participate
in FFELP, but not in FDLP.
*** End of document. ***